Section 8 Fair Market Rent (FMR) for ZIP 20785 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 20785

• Housing Authority of Prince Georges County (Largo, MD) - 5,986 Section 8 vouchers
• MD Dept. Of Housing and Community Development (Lanham, MD) - 2,868 Section 8 vouchers
• College Park Housing Authority (College Park, MD)
• Glenarden Housing Authority (Glenarden, MD)

To decide whether to invest in ZIP code 20785 (Greater Landover, MD) for Section 8 properties, follow this decision tree:

• Does FMR $1710 (zip FY 2024) clear debt service on a $345,205 property?
  • If yes: The Fair Market Rent (FMR) of $1710 is sufficient to cover the debt service on a property valued at $345,205. This means that the rental income will meet the mortgage payments and other financial obligations associated with owning the property.
  • If no: The FMR of $1710 does not clear the debt service on a $345,205 property. Therefore, investing in this area would not be financially viable under the Section 8 program due to insufficient rental income.
• Is market rent $1,953 (ZORI) above, at, or below FMR?
  • If above: The Zillow Observed Rental Index (ZORI) of $1,953 is higher than the FMR of $1710. This indicates that the market rent is favorable and could provide additional income if the landlord chooses to rent outside the Section 8 program.
  • If at: The ZORI of $1,953 is roughly equivalent to the FMR of $1710. This suggests that renting through the Section 8 program aligns well with market conditions, offering a stable income source.
  • If below: The ZORI of $1,953 is lower than the FMR of $1710. This scenario is unlikely given the provided numbers but would imply that market rents are generally lower than what the Section 8 program offers, making it a potentially attractive option.
• Are 48.4% renters + 33-day DOM enough demand?
  • If yes: With 48.4% of residents being renters and an average Days on Market (DOM) of 33 days, there is a strong rental market. This combination indicates that demand is high enough to ensure the property can be rented out promptly.
  • If no: The 48.4% rental rate and 33-day DOM suggest moderate demand. However, these figures alone do not necessarily indicate a lack of demand; they require further analysis to determine if the investment is worthwhile.
  • If it depends: The demand factors are balanced. A 48.4% rental rate is significant, and a 33-day DOM shows reasonable market absorption speed. Whether this is enough demand depends on the landlord's risk tolerance and the specifics of their investment strategy.

In conclusion, if the FMR clears debt service and the market rent is above or equal to the FMR, the investment is likely to be profitable. The rental demand in ZIP 20785 appears to be strong, supporting the viability of such investments.

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.