Section 8 Fair Market Rent (FMR) for ZIP 10165 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 10165 presents several challenges for potential Section 8 landlords and small-portfolio investors. The first issue is tenant turnover, which can be higher due to the disparity between market rent and the Fair Market Rent (FMR) set at $3450 for FY 2024. This difference often leads to difficulties in maintaining consistent occupancy, as tenants may struggle to afford the cost of living beyond their voucher coverage.

Vacancy exposure is another concern. With no available data on the days on market (DOM), it's challenging to predict how quickly a property might fill. High vacancy rates can significantly impact cash flow and profitability, especially if there are long periods where units remain unoccupied.

Deferred maintenance is also a risk factor. Without specific figures on the typical home value and median income, it's difficult to assess the financial capacity of residents to handle maintenance issues. However, properties that require frequent repairs can lead to higher operating costs, reducing overall returns on investment.

Despite these risks, the high concentration of renters in the area increases the likelihood of strong demand for housing vouchers. A high renter share typically indicates a robust market for Section 8 tenants, as many individuals and families rely on rental assistance to find suitable housing.

Verdict: Moderate risk for a first-time Section 8 landlord.

Data Sources: FMR data from HUD (2027).

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.