Section 8 Fair Market Rent (FMR) for ZIP 13201 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should buy properties in ZIP code 13201 (Unknown, NY) for Section 8, follow these decision points based on the provided data:

1. Does the Fair Market Rent (FMR) of $1150 cover the debt service?

• No: If the FMR does not clear the debt service, purchasing a property for Section 8 would be financially unviable. Debt service refers to the total amount of money required to meet the interest and principal payments on a loan.
• Yes: If the FMR of $1150 can cover the debt service, proceed to the next question.

2. How does the market rent compare to the FMR?

• Above FMR: If the market rent is higher than the FMR, landlords may find it challenging to attract tenants willing to pay the lower Section 8 rates. This makes the investment less attractive unless there's significant demand for subsidized housing.
• At or Below FMR: If the market rent is at or below the FMR, Section 8 tenants could potentially pay the full rent, making the investment more viable.

3. Is there sufficient tenant demand?

• It Depends: The data indicates that the percentage of renters and the days on market (DOM) are unknown. To make an informed decision, a landlord must assess whether the local demand for rental properties, particularly those eligible for Section 8, is strong enough. A high percentage of renters and low DOM suggest strong demand. Conversely, a low percentage of renters and high DOM indicate weak demand. Without specific numbers, the viability of the investment hinges on additional research into local rental trends and the availability of Section 8 vouchers.

In conclusion, while the FMR of $1150 is a critical starting point, the ultimate decision to invest in ZIP 13201 for Section 8 properties requires answering questions about market rent and tenant demand. Landlords must ensure that the FMR covers their debt service and that the local rental market supports the Section 8 rate before proceeding with a purchase.

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.