Section 8 Fair Market Rent (FMR) for ZIP 20898 - 2027

FY 2027 Fair Market Rent Rates

The potential pitfalls for a Section 8 landlord in ZIP 20898, located in Unknown, DC, include significant tenant turnover, especially when comparing the market rent to the Federal Market Rent (FMR) of $2100 for fiscal year 2024. The absence of specific market rent data suggests that the local rental market may be less robust compared to the subsidized rates offered under Section 8, leading to frequent moves among tenants who find better options outside the program.

Vacancy exposure is another concern. With no data on days on market (DOM), it's challenging to predict how long a property might remain vacant between tenancies. This uncertainty can lead to periods where the landlord does not receive rental income, impacting cash flow stability.

The lack of information on the typical home value and median income in ZIP 20898 further complicates the analysis. Without these figures, assessing the likelihood of deferred maintenance issues becomes difficult. Tenants with lower incomes might struggle to cover their portion of the rent or contribute to necessary repairs, increasing the financial burden on the landlord.

However, the high renter density in ZIP 20898, indicated by the unspecified percentage of renters, typically translates into strong demand for housing vouchers. This factor can mitigate some risks associated with vacancy and ensure a steady stream of potential tenants who qualify for the Section 8 program.

Verdict: Moderate risk for a first-time Section 8 landlord.

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.