Section 8 Fair Market Rent (FMR) for ZIP 13440 - 2027

Investment Score for ZIP 13440

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	$890
1 Bedroom	$980
2 Bedrooms	$1,250
3 Bedrooms	$1,490
4 Bedrooms	$1,690
5 Bedrooms	$1,960
6 Bedrooms	$2,195
7 Bedrooms	$2,371
8 Bedrooms	$2,490

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$980	$127,366	0.77%	D
2BR	$1,250	$169,131	0.74%	D
3BR	$1,490	$213,444	0.7%	D
4BR	$1,690	$253,910	0.67%	D
5BR	$1,960	$258,743	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 13440 (Rome, NY) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 13440 in Rome, NY, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1190 per month. This figure is critical for understanding how Section 8 vouchers can be used in the area. However, it's important to note that the actual rents in the market may differ from these FMRs. The occupancy rate of 91.8% suggests that there is a strong demand for housing, which could drive actual rents above the FMR levels. For voucher holders, the constraints are significant. The FMR for a three-bedroom unit is $1430, which represents only 20.9% of the median household income ($68,207). This means that many families who might benefit from a three-bedroom unit would find it difficult to afford even the FMR without additional assistance. #### Affordability & Renter Profile In ZIP code 13440, 35.6% of the population are renters, indicating a substantial rental market. Given the median household income of $68,207, affordability is a key issue. A two-bedroom unit at the FMR of $1190 would consume about 17.4% of the median income, which is relatively manageable but still a significant portion of a family’s budget. The Zillow median price for a two-bedroom home in the area is $159,282, which translates to a price-to-FMR ratio of 11.2x. This high ratio suggests that the market is tight and that property values are significantly higher than what tenants might be paying in rent. This dynamic makes it challenging for renters to transition into homeownership, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 13440 presents both opportunities and challenges. The FMRs provide a benchmark for rental pricing, but the actual market rents may exceed these figures due to the high occupancy rate and limited supply. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with rental properties. Assuming a conservative estimate of 40% of the rental income going towards expenses such as maintenance, taxes, insurance, and mortgage payments, a two-bedroom unit renting at $1190 would generate approximately $714 in net monthly income. This is a reasonable amount for covering ongoing costs and providing a modest profit margin. However, the investment grade of properties in this ZIP code is influenced by several factors. The high price-to-FMR ratio indicates that while property values are high, the rental income generated at FMR may not fully justify the purchase price. Investors should carefully evaluate the potential for rental increases and the stability of the local economy before making any investments. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high demand and the fact that a two-bedroom unit at $1190 FMR consumes a relatively small percentage of the median income, investors should focus on acquiring and managing two-bedroom units. These units are most likely to be occupied by Section 8 voucher holders and other low-income renters. 2. **Consider Rental Increases**: With an occupancy rate of 91.8%, there is room for rental increases beyond the FMR. Investors should explore the possibility of charging slightly above FMR rates, particularly for units that are in better condition or have added amenities. This could help offset the high purchase price and improve cash flow. 3. **Evaluate Property Values**: Given the high price-to-FMR ratio, investors should conduct thorough due diligence on property values. They should look for undervalued properties or those with potential for renovation that could increase their rental value. Additionally, they should consider the long-term appreciation potential of the area to ensure that their investment remains viable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 13440 is to **Hold**. While there is a strong rental market and a significant number of voucher holders, the high price-to-FMR ratio makes it challenging to achieve a positive cash flow at FMR alone. Investors should carefully assess individual properties and consider strategies to increase rental income beyond FMR. The tight market and high occupancy rates suggest that there will continue to be demand for rental properties, but the investment must be made wisely to ensure profitability.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.