Section 8 Fair Market Rent (FMR) for ZIP 22320 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 22320 for Section 8 purposes, follow this decision tree:

Step 1: Calculate if the Fair Market Rent (FMR) of $2090 can cover your debt service on the property. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. If your total debt service is less than $2090, proceed to Step 2. Otherwise, the answer is no; do not invest in this area.

Step 2: Determine if the market rent is above, at, or below the FMR of $2090. Due to the lack of specific data on market rents, this step requires additional research. If market rents are significantly higher than the FMR, consider the potential for non-Section 8 tenants who might pay more. If they are close to or below the FMR, focus on the next steps.

Step 3: Assess the rental demand in the area. Look at the percentage of renters and the days on the market (DOM) for rental properties. Without specific figures, evaluate whether there is enough demand to ensure steady occupancy. If the demand is high, with a significant portion of the population renting and short DOM times, the answer is yes; investing in this area for Section 8 is viable. If demand is low, the answer is no; the risk of vacancy is too high.

Note that without precise data on market rents and rental demand, some decisions will require judgment calls based on broader market trends and local knowledge. However, the FMR of $2090 provides a clear benchmark for covering basic operating costs.

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.