Section 8 Fair Market Rent (FMR) for ZIP 16651 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 16651 might have several concerns regarding the viability of renting properties through the Section 8 program. Let's address these concerns directly using the available data.

• Will FMR $970 (metro FY 2026) cover the mortgage on a $116,615 home?: The Fair Market Rent (FMR) of $970 in ZIP 16651 for fiscal year 2026 is a critical figure for landlords. To determine if it will sufficiently cover the mortgage, we must consider the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment on a $116,615 home would be approximately $625. This means that the FMR of $970 would indeed cover the mortgage payment with a surplus of $345 per month, which can be used towards property taxes, insurance, maintenance, and other expenses.
• Is there enough renter demand at 19.2%?: The 19.2% rental rate in ZIP 16651 indicates that nearly one-fifth of the housing units are rented, which suggests a moderate level of demand. However, the percentage alone does not provide a complete picture. It is essential to look at the total number of households and the vacancy rate. With 19.2% of homes rented, if the total number of households is substantial, there could still be a significant pool of potential renters. Unfortunately, the data provided does not include the total number of households or the vacancy rate, making it challenging to definitively assess the demand.
• Will vouchers keep pace with $667 market rents?: The Section 8 Housing Choice Voucher program aims to subsidize rents up to the Fair Market Rent level. In ZIP 16651, the market rent is $667, which is below the FMR of $970. This implies that landlords participating in the Section 8 program should receive sufficient voucher payments to cover their costs. However, the key question is whether the voucher amount will adjust with inflation and market conditions. Based on the data given, we cannot predict future adjustments to voucher amounts. Historical trends show that the U.S. Department of Housing and Urban Development (HUD) periodically updates FMRs and voucher limits, but specific figures for ZIP 16651 beyond FY 2026 are not available.

In conclusion, while the FMR of $970 appears to cover the mortgage on a $116,615 home with room for additional expenses, the rental demand and future pace of voucher increases remain uncertain without further data points.

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.