Section 8 Fair Market Rent (FMR) for ZIP 12024 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking into ZIP code 12024 might have several concerns regarding the feasibility of investing in Section 8 properties. Here are the most common objections, addressed with available data.

• Will Fair Market Rent (FMR) of $1320 cover the mortgage on a $394,527 home? The FMR of $1320 for ZIP 12024 does not directly correlate to the mortgage payment on a property valued at $394,527. To accurately assess whether the FMR can cover the mortgage, one must consider the loan terms, interest rates, and property taxes. However, based on typical mortgage calculations, a monthly rental income of $1320 would likely fall short of covering the mortgage payment alone on such a high-value home. This suggests that landlords should carefully evaluate their financial situation and possibly seek additional sources of income or consider lower-priced homes to ensure profitability.
• Is there enough renter demand at 27.3%? With only 27.3% of households being renters, it might seem that the demand for rental properties in ZIP 12024 is low. However, this percentage translates to actual numbers of potential tenants, which must be considered. If the total number of households is relatively large, even a smaller percentage could represent a significant pool of renters. Additionally, the demand for affordable housing can vary widely; a detailed analysis of local rental trends and vacancy rates would provide a clearer picture of the true demand. The data here is insufficient to make a definitive statement about the adequacy of renter demand.
• Will vouchers keep pace with market rents? Unfortunately, the data does not specify the current market rents for ZIP 12024, making it impossible to definitively compare voucher amounts with market rates. In general, voucher amounts are adjusted annually based on the FMR, but they do not always align perfectly with the local market conditions. Landlords should monitor the local rental market and the adjustments made to voucher amounts to ensure that they remain competitive and profitable. Given the lack of specific market rent data, caution is advised when relying solely on vouchers to cover rental costs.

The data provided offers insights but also highlights areas where further investigation is necessary. Investors must perform a thorough analysis of the local real estate market and understand the specific dynamics of ZIP 12024 to make informed decisions.

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.