Section 8 Fair Market Rent (FMR) for ZIP 16565 - 2027

FY 2027 Fair Market Rent Rates

The decision to invest in ZIP 16565 for Section 8 properties hinges on three key factors:

• 1) Debt Service Coverage: The Fair Market Rent (FMR) for ZIP 16565 in fiscal year 2024 is $980. To determine if this FMR can cover the debt service on a property, you must first know the property's debt service requirements. If the debt service per unit is less than $980, then the answer is yes, the FMR clears the debt service. Otherwise, no.
• 2) Market Rent Comparison: Without specific market rent data, it's impossible to directly compare it to the FMR. However, if market rent is above $980, landlords can charge higher rents outside of Section 8. If it equals $980, Section 8 tenants pay the full rent, which is ideal for covering costs. If below $980, landlords might face challenges renting units to non-Section 8 tenants, making the program crucial for financial viability.
• 3) Demand Analysis: The percentage of renters and days on market (DOM) provide insight into demand. With incomplete data, a precise analysis isn't possible. Generally, a high percentage of renters and low DOM indicate strong demand. Conversely, a low percentage of renters and high DOM suggest weak demand. Strong demand supports investment, while weak demand may deter it.

To summarize, if the FMR of $980 covers the debt service and market rent is competitive or higher, and there is sufficient tenant demand, then investing in ZIP 16565 for Section 8 properties is advisable. If any of these conditions are not met, reconsideration is necessary.

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.