Section 8 Fair Market Rent (FMR) for ZIP 15340 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 15340

• WASHINGTON COUNTY HOUSING AUTHORITY (Washington, PA) - 1,016 Section 8 vouchers

To determine if you should buy a property in ZIP code 15340 (Hickory, PA) for Section 8 investment, follow this decision tree:

1) Does FMR $1100 (zip FY 2024) clear debt service on a $260,441 property?

• Yes: The Fair Market Rent (FMR) of $1100 per month is sufficient to cover the debt service on a property valued at $260,441. Assuming a typical mortgage rate and term, your monthly payments would be around $1175, which means the FMR is just shy of covering these costs. However, this does not account for potential property tax deductions, insurance, and maintenance expenses.
• No: The FMR of $1100 is not enough to fully cover the debt service on a property valued at $260,441. Monthly mortgage payments would exceed this amount, making the investment unprofitable without additional income sources or cost reductions.
• It Depends: The viability hinges on the exact terms of your financing, including interest rates and down payment. With favorable terms, such as a lower interest rate or a higher down payment, the FMR could potentially cover the debt service. Otherwise, the investment is likely to be unprofitable.

2) Is market rent $858 (Census ACS) above, at, or below FMR?

• Above: If the market rent exceeds the FMR, you can charge the higher market rate to Section 8 tenants, thus increasing profitability. However, in ZIP 15340, the market rent is below the FMR, indicating that you must accept the lower market rent.
• At: This scenario would mean that the market rent matches the FMR, providing a stable income but no room for profit increase through higher rents.
• Below: The market rent of $858 is below the FMR of $1100, meaning you will have to accept the lower market rent when renting to Section 8 tenants. This reduces the profitability of the investment.

3) Are 19.8% renters + N/A-day DOM enough demand?

• Yes: If there is sufficient demand, the 19.8% of the population who are renters combined with an unknown number of days on the market (DOM) indicates that properties are being rented out quickly. This suggests a strong demand for rental units in Hickory, PA, which benefits Section 8 landlords.
• No: If demand is low, the 19.8% of renters and the lack of data on DOM indicate that it might be difficult to find tenants for your property. This could result in periods of vacancy and reduced income.
• It Depends: The percentage of renters is moderate, but without knowing the DOM, it's hard to gauge how quickly properties are rented. If the DOM is low, it implies high demand; if it's high, it suggests low demand.

In summary, the decision to invest in ZIP 15340 for Section 8 should be made carefully. The FMR is close to covering debt service, the market rent is below the FMR, and the demand is moderate with insufficient data on DOM. A positive outcome requires favorable financing terms and a strong local demand for rental housing.

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.