Section 8 Fair Market Rent (FMR) for ZIP 17821 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 17821

• Columbia County Housing Authority (Bloomsburg, PA) - 475 Section 8 vouchers
• Housing Auth of the County of Northumberland (Milton, PA) - 469 Section 8 vouchers
• Shamokin Housing Authority (Shamokin, PA) - 450 Section 8 vouchers
• Sunbury Housing Authority (Sunbury, PA) - 240 Section 8 vouchers
• The Housing Authority of Montour County (Danville, PA) - 156 Section 8 vouchers

If a landlord is considering purchasing a property in ZIP code 17821 (Danville, PA) for Section 8 investment, they must evaluate several factors to make an informed decision. Here is a structured approach:

1) Does FMR ($1100 - zip FY 2024) clear debt service on a $272,346 property?

• No: The Fair Market Rent (FMR) of $1100 does not cover the typical debt service costs for a property valued at $272,346. Debt service includes principal and interest payments on a mortgage, which would likely exceed $1100 per month for such a property. This makes it unfeasible to rely solely on Section 8 income for financial sustainability.

2) Is market rent ($1,538 - ZORI) above, at, or below FMR?

• Above: The Zillow Observed Rental Index (ZORI) indicates that the average market rent is $1,538, significantly higher than the FMR of $1100. This suggests that while Section 8 may not be sufficient alone, there is potential to attract non-Section 8 tenants willing to pay more, thus diversifying rental income sources.

3) Are 30.2% renters + 11-day Days on Market (DOM) enough demand?

• Yes: With 30.2% of the population being renters and an average DOM of 11 days, there is a strong indication of demand for rental properties in Danville, PA. The relatively low DOM suggests that properties are rented quickly, implying a healthy turnover rate and steady occupancy levels.

In conclusion, while the FMR of $1100 is insufficient to cover the debt service of a $272,346 property, the market rent being $1,538 provides a clear opportunity to diversify tenant types and secure higher rents. Additionally, the 30.2% rental rate combined with a quick 11-day DOM signals a robust demand for rentals in the area. Therefore, the decision to invest in Section 8 properties in Danville, PA, should be made with the understanding that relying solely on FMR is financially risky, but the potential to attract market-rate tenants can mitigate this risk.

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.