Section 8 Fair Market Rent (FMR) for ZIP 16435 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When evaluating whether to purchase properties in ZIP code 16435 for Section 8 investment, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $880 cover the debt service on a property valued at $163,846?

• Yes: If the FMR of $880 exceeds the monthly mortgage payment, then the property can be considered financially viable under Section 8 guidelines.
• No: If the FMR of $880 does not cover the debt service, purchasing in this area would not be advisable for Section 8 investment.
• It Depends: This scenario arises if the FMR barely covers the debt service. In such cases, consider the stability of rental income and potential for rent increases.

2) Is the market rent of $855 above, at, or below the FMR?

• Above: If the market rent exceeds the FMR, there might be opportunities to rent out properties to non-Section 8 tenants at higher rates, increasing profitability.
• At: If the market rent equals the FMR, the property will likely only attract Section 8 tenants. Ensure that the FMR adequately covers costs before proceeding.
• Below: If the market rent is below the FMR, it could indicate a weak rental market. Proceed with caution unless you are certain that Section 8 occupancy will be high and stable.

3) Are 18.4% of residents renters, and is the number of days on the market (DOM) sufficient to ensure demand?

• Yes: With 18.4% of residents being renters and assuming the DOM is low, there is likely enough demand to fill your units. The percentage of renters indicates a significant portion of the population relies on rental housing, which can support Section 8 investments.
• No: If the DOM is high and the percentage of renters is insufficient, demand for rental properties may be too low to justify an investment. High DOM suggests difficulty in renting out units quickly.
• It Depends: If the DOM data is not available, assess other factors such as unemployment rates, job growth, and the local economy. A strong local economy can compensate for unknown DOM figures.

In conclusion, ZIP 16435 presents a mixed picture for Section 8 investment. Landlords must carefully evaluate the financials and demand to determine if the area suits their investment strategy.

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.