Section 8 Fair Market Rent (FMR) for ZIP 16550 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 16550 for Section 8 purposes, follow this decision tree:

• Does the Fair Market Rent (FMR) of $980 cover your debt service?
  • Yes: Proceed to the next question.
  • No: Do not purchase here. The FMR does not provide sufficient income to meet financial obligations.
• Is the market rent above, at, or below the FMR of $980?
  • Above: Market conditions favor higher rents. However, this means that Section 8 tenants might struggle to find housing in this area, reducing demand.
  • At: This ZIP code aligns well with the FMR, making it suitable for Section 8 tenants. It ensures that the rental price matches the subsidy amount.
  • Below: There is an opportunity to offer competitive pricing while still meeting the FMR requirements. This could attract more Section 8 tenants.
• Are the percentage of renters and the days on market (DOM) indicative of strong demand?
  • N/A% Renters + N/A-day DOM: Without specific percentages and DOM figures, it's difficult to assess demand accurately. To make a clear decision, you need these numbers.

If the percentage of renters is high and the DOM is low, there is likely strong demand for rentals in this area. Conversely, if the percentage of renters is low and the DOM is high, demand is weak, making it a less attractive investment for Section 8 properties.

Note: The analysis is incomplete without precise data on market rent, percentage of renters, and DOM. These factors are critical in determining whether the investment is viable for Section 8 tenants.

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.