Section 8 Fair Market Rent (FMR) for ZIP 10959 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should invest in ZIP code 10959 for Section 8 properties, follow this decision tree:

• Does the FMR of $1860 cover debt service on a property?
  • Yes: If the Fair Market Rent (FMR) of $1860 is sufficient to cover the mortgage and other expenses, then the investment could be viable.
  • No: If the FMR does not cover the debt service, purchasing a property in this ZIP code would not be advisable as it would lead to financial losses.
• Is the market rent above, at, or below the FMR of $1860?
  • Above: If the market rent exceeds the FMR, landlords can consider renting to non-Section 8 tenants to maximize income. However, this strategy might limit the pool of potential tenants.
  • At: When market rent equals the FMR, landlords can confidently participate in the Section 8 program without risking lower income compared to the market rate.
  • Below: If the market rent is below the FMR, participating in the Section 8 program could be advantageous as it guarantees a higher rent than the local market.
• Are the rental demand indicators strong?
  • It depends: Without specific percentages of renters and days on the market (DOM), it's challenging to assess demand definitively. However, if the percentage of renters is high and the DOM is low, it suggests strong demand and a good opportunity for landlords.

The key to making a sound investment decision lies in analyzing these factors. Ensure that the FMR covers your costs, understand the market rent dynamics, and evaluate the rental demand before proceeding with a purchase in ZIP 10959.

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.