Section 8 Fair Market Rent (FMR) for ZIP 19721 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 19721 for Section 8, follow this decision tree:

Step 1: Does the Fair Market Rent (FMR) of $1740 cover your debt service?

• No: Do not purchase. The FMR does not sufficiently cover the costs associated with owning a property.
• Yes: Proceed to Step 2.

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

• Above FMR: It depends. High market rents suggest strong demand, but also imply that tenants might struggle to find affordable housing. Ensure there is a significant number of low-income households who would qualify for Section 8.
• At FMR: Yes. This indicates that the market rent aligns well with what Section 8 can pay, making it a viable investment.
• Below FMR: Yes. Lower market rents mean that properties are already priced to be affordable, which can make Section 8 vouchers particularly attractive to potential tenants.

Step 3: Is there sufficient demand based on the percentage of renters and days on market (DOM)?

• It depends: Without specific percentages of renters and DOM figures, it's challenging to assess the demand accurately. However, generally speaking, a high percentage of renters and a low DOM indicate strong demand. Conversely, a low percentage of renters and a high DOM suggest weak demand.

Note: The analysis is limited due to missing specific data points such as property values, exact market rents, and precise percentages of renters and DOM. To make an informed decision, you must fill in these gaps with local market research.

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.