Section 8 Fair Market Rent (FMR) for ZIP 02713 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The ZIP code 02713 is located in Cuttyhunk, MA, and has specific characteristics that can guide a landlord's decision regarding purchasing a property for Section 8.

1. Does the Fair Market Rent (FMR) of $2,000 cover debt service on a $1,429,702 property?

• No: With an FMR of $2,000, it would be challenging to cover the debt service on a property valued at $1,429,702. This is especially true given that the median home price in the area is exceptionally high at $1.82 million, indicating higher-than-average mortgage costs.

2. Is the market rent above, at, or below the FMR?

• N/A: There is no readily available data on the current market rent for ZIP 02713. However, based on the median home price and the fact that rentals are predominantly studio apartments, it is likely that the market rent could be lower than the FMR. It is important to note that the typical rental cost for studio apartments in this area is less than $200 per month, which suggests a significant gap between market rents and the FMR.

3. Are 20.0% renters and N/A-day days on market indicative of sufficient demand?

• It Depends: While the percentage of renters is 20%, there is insufficient data on the days on market (DOM) to make a definitive assessment. The high median home price and the prevalence of studio apartments suggest that the demand for larger rental units might be limited. However, the presence of 152 rental homes for sale indicates some level of interest in the rental market. To make a final decision, further investigation into the number of units available under the Section 8 program and the competition within the market is necessary.

Based on the provided data, the decision to purchase a property in ZIP 02713 for Section 8 purposes hinges on the ability to manage a potentially large gap between market rents and the FMR, as well as understanding the local rental demand dynamics. Landlords must weigh these factors carefully before making an investment decision.

Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.