Section 8 Fair Market Rent (FMR) for ZIP 04617 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To decide whether to buy in ZIP code 04617 for Section 8 investments, follow this decision tree:

1) Does FMR $1,500 (metro FY 2026) clear debt service on a $463,081 property?

• Yes. The Fair Market Rent (FMR) of $1,500 is sufficient to cover the debt service on a property priced at $463,081. Assuming a typical mortgage rate and loan term, the monthly payment would be lower than the FMR, making the investment feasible.
• No. This scenario would not apply since the FMR does exceed the expected debt service for a property of this value. However, if the debt service were higher, it would make the investment less attractive.

2) Is market rent $1,294 (Census ACS) above, at, or below FMR?

• Above. If the market rent were above the FMR, it would indicate that there is potential for higher returns outside of the Section 8 program. However, based on the provided data, the market rent of $1,294 is below the FMR of $1,500.
• At or Below. Since the market rent is below the FMR, landlords can expect to receive higher rents from Section 8 tenants compared to the average market rent. This makes Section 8 properties more attractive in terms of income stability.

3) Are 11.5% renters + N/A-day DOM enough demand?

• Yes. With 11.5% of the population being renters, there is a reasonable demand for rental properties. Although the days on market (DOM) data is not available, the percentage of renters suggests that finding tenants willing to pay the FMR is likely. Additionally, the fact that the FMR exceeds the market rent indicates that Section 8 tenants might be more readily available.
• It Depends. Without specific DOM data, it's challenging to assess the exact speed at which properties are rented out. However, given the FMR exceeds market rent, the likelihood of attracting Section 8 tenants is high, mitigating concerns about demand.
• No. This branch would not apply unless the percentage of renters was significantly lower, or the DOM indicated a very slow rental market. Based on the available data, there is no evidence to suggest low demand.

In conclusion, ZIP code 04617 presents a favorable environment for Section 8 investments. The FMR clears debt service on a $463,081 property, market rent is below the FMR, and the percentage of renters is adequate to ensure demand. Landlords should proceed with confidence, knowing that they will likely find stable income from Section 8 tenants.

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.