Section 8 Fair Market Rent (FMR) for ZIP 12985 - 2027

Investment Score for ZIP 12985

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$930
1 Bedroom	$950
2 Bedrooms	$1,210
3 Bedrooms	$1,450
4 Bedrooms	$1,650
5 Bedrooms	$1,914
6 Bedrooms	$2,144
7 Bedrooms	$2,316
8 Bedrooms	$2,432

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,450	$202,668	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the analysis of the Section 8 program in ZIP 12985 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2026, the FMR is set at $1,270. However, recent data suggests that the market rent for 2-bedroom properties in ZIP 12985 typically ranges from $500 to $749 per month, including utilities. This indicates that the FMR is substantially higher than the market rent, creating a scenario where landlords can potentially benefit from accepting housing vouchers.

The difference between the FMR and the market rent is stark. At $1,270, the FMR is approximately 170% to 205% higher than the typical market rent range. This means that landlords who accept Section 8 voucher tenants can achieve a higher rental income compared to renting out their properties at market rates. In ZIP 12985, with only 15.4% of residents being renters and a median home value of $185,230, the potential for a yield play through Section 8 is evident.

Given the median income of $76,090 in ZIP 12985, many local residents might struggle to afford market rents without assistance. The FMR, therefore, acts as a subsidy to help bridge this affordability gap. Landlords can leverage this situation by accepting voucher holders, thus securing a steady stream of rental income at rates above the local market average.

However, it's crucial for landlords to understand the administrative requirements and potential delays associated with Section 8 vouchers. While the financial incentive is clear, the decision should also consider the operational aspects of managing voucher tenants. Despite these considerations, the significant gap between the FMR and market rent makes ZIP 12985 an attractive area for landlords looking to maximize their returns through the Section 8 program.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.