Section 8 Fair Market Rent (FMR) for ZIP 11547 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 11547 might raise several valid concerns regarding the feasibility of investing in this area through the lens of Section 8 housing. Let's address these points directly using available data.

• Will FMR $2690 (zip FY 2024) cover the mortgage on a $961,809 home? The Fair Market Rent (FMR) for ZIP 11547 in fiscal year 2024 is set at $2690. To determine if this amount can cover the mortgage on a home priced at $961,809, we need to consider the prevailing interest rates and typical loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment on a $961,809 property would be approximately $5200. Clearly, the FMR of $2690 is insufficient to cover such a mortgage payment. This highlights a significant financial risk for landlords who might expect to rely solely on Section 8 payments to service their mortgages.
• Is there enough renter demand at 40.9%? The percentage of renters in ZIP 11547 stands at 40.9%. While this figure indicates a substantial portion of the population relies on rental housing, it does not provide a complete picture of the demand for Section 8 properties specifically. A 40.9% rental rate suggests a competitive market, but without additional data on the number of Section 8 participants and their distribution among rental units, it's challenging to definitively state whether this demand level is sufficient for landlords interested in Section 8 properties. However, the presence of a significant rental market could imply robust overall demand for housing, which may support various types of rentals, including those that accept Section 8 vouchers.
• Will vouchers keep pace with $2,360 market rents? The FMR of $2690 is designed to reflect the average market rent for a modest apartment in ZIP 11547. If the actual market rent is $2,360, then the voucher amount should theoretically cover this cost. However, landlords must also consider the administrative burden and potential delays associated with voucher processing. Additionally, the FMR does not guarantee that all vouchers will reach this level; individual voucher amounts can vary based on family size and income. It's important for landlords to understand that while the FMR is intended to keep pace with market rents, the actual amount received per tenant may differ, necessitating careful financial planning.

The data provides a starting point for understanding the challenges and opportunities in ZIP 11547, but it also underscores the importance of further research into local market conditions, interest rates, and the specifics of Section 8 administration.

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.