Section 8 Fair Market Rent (FMR) for ZIP 18630 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering ZIP 18630 for Section 8 investment must navigate a decision tree based on financial feasibility and market demand.

Step 1: Can the Fair Market Rent (FMR) of $970 cover the debt service on a property valued at $228,564?

• Yes: The FMR exceeds the average monthly debt service, making it financially viable to invest in properties up to this value under the Section 8 program.
• No: For properties exceeding $228,564, the FMR might not sufficiently cover the debt service, rendering such investments less attractive.

Step 2: How does the market rent of $950 compare to the FMR?

• Above: If market rents were higher than the FMR, landlords could potentially earn more by renting outside of Section 8. However, since the market rent is slightly below the FMR, sticking with Section 8 could still be profitable.
• At or Below: Given that the market rent is $950, which is just below the FMR, landlords should consider the stability and reliability of Section 8 payments over market fluctuations.

Step 3: Is there sufficient demand with 19.7% of residents being renters and an unknown number of days on the market (DOM)?

• Yes: With nearly 20% of the population as renters, there is a notable demand for rental properties. The lack of data on DOM suggests either limited recent sales or a stable market where properties are quickly leased once listed.
• It Depends: Without a definitive DOM figure, landlords must assess other factors like vacancy rates, local job markets, and population trends to gauge the actual leasing speed and demand. If the vacancy rate is low and the job market strong, the demand is likely high despite the missing DOM data.
• No: If other indicators show weak demand, such as high vacancy rates or declining population, then even the 19.7% of renters might not translate into a robust leasing environment.

In summary, if the answers to these steps are positive, then investing in ZIP 18630 for Section 8 properties is advisable. However, if any step indicates caution, further investigation into local economic conditions and rental market specifics is necessary before making an investment decision.

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.