Section 8 Fair Market Rent (FMR) for ZIP 04459 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP 04459 in Rhode Island might have several concerns regarding the feasibility of investing in the area through the Section 8 program. Let's address these points directly.

• Will FMR $1180 (zip FY 2024) cover the mortgage on a N/A home? The Fair Market Rent (FMR) for ZIP 04459 in fiscal year 2024 is set at $1180. However, without specific data on the average home value in the area, it's impossible to determine if this FMR will sufficiently cover the mortgage payments. It's important to note that FMRs are designed to reflect the rental market, not necessarily to cover the entire cost of homeownership including property taxes and insurance. For a precise analysis, you'd need to consult local real estate listings and financial calculators.
• Is there enough renter demand at 21.6%? The rental vacancy rate in ZIP 04459 stands at 21.6%. This figure suggests a relatively high vacancy rate, which could indicate a lack of sufficient demand. Typically, a vacancy rate below 5% signals strong demand, while rates above 10% can be concerning. A 21.6% rate might suggest that the market is oversupplied with rental units, potentially leading to challenges in filling properties. However, this percentage alone does not tell the whole story; it's also crucial to consider the number of renters in the area and the competition level. High vacancy rates can sometimes be mitigated by offering competitive amenities or pricing strategies.
• Will vouchers keep pace with $488 market rents? The average market rent in ZIP 04459 is reported at $488. Comparing this to the FMR of $1180, it becomes evident that vouchers are likely to exceed the average market rent. This means that landlords participating in the Section 8 program should expect to receive a payment close to or even above the average rent for the area. While this is positive for covering operating costs, it's essential to monitor any changes in voucher amounts and local rent trends to ensure continued profitability.

The data available provides insights into the rental market dynamics but lacks specifics on home values and mortgage costs, which are critical for a complete assessment. Careful consideration of these factors alongside the rental vacancy rate and voucher amounts is necessary for making informed investment decisions in ZIP 04459.

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.