Section 8 Fair Market Rent (FMR) for ZIP 20911 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 20911 for Section 8 investment, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $2100 cover the debt service on a property?

• Yes: If the FMR of $2100 is sufficient to cover your monthly mortgage payments and other expenses associated with the property, then it is financially viable to consider purchasing a property in this area for Section 8 tenants.
• No: If the FMR of $2100 does not cover your debt service, buying a property in this ZIP code would result in financial losses and is not recommended for Section 8 investment.
• It Depends: If the FMR is close but not entirely covering the debt service, you might still consider the investment if you can find properties that offer a better cost-to-income ratio or if you can manage to keep operational costs low.

2) Is the market rent above, at, or below the FMR?

• Above: If the market rent is higher than $2100, it suggests that there is potential for non-Section 8 tenants who might pay more, diversifying your rental income sources. However, this also means that Section 8 vouchers might not be as attractive to these tenants.
• At: If the market rent matches the FMR, then Section 8 tenants will likely be competitive with market-rate tenants, making the investment straightforward.
• Below: If the market rent is lower than $2100, Section 8 tenants could provide a stable income source, but it may also indicate that the area has lower overall rental demand.

3) Are the percentage of renters and days on the market (DOM) enough to ensure demand for your property?

• Yes: If the majority of residents are renters and the DOM is relatively short, it indicates a strong rental market where demand for your property is likely to be high.
• No: If the percentage of renters is low and the DOM is long, this suggests a weak rental market, making it difficult to find tenants even with Section 8 vouchers.
• It Depends: If the percentage of renters is moderate and the DOM varies, you may need to consider additional factors such as the vacancy rate, the competition from other landlords, and the local economy's health to make a well-informed decision.

Note: The data provided is incomplete (N/A values), which makes some analysis points speculative. For a precise decision, accurate figures for market rent, percentage of renters, and DOM are necessary.

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.