Section 8 Fair Market Rent (FMR) for ZIP 22848 - 2027

FY 2027 Fair Market Rent Rates

To decide whether to buy in ZIP code 22848 for Section 8 investment, follow this decision tree:

1) Does FMR $1190 (zip FY 2024) clear debt service on a property?

• Yes: If your property's debt service is less than $1190 per month, then the Fair Market Rent (FMR) covers your costs. This makes the ZIP code financially viable for Section 8 tenants.
• No: If your property's debt service exceeds $1190 per month, then the FMR does not cover your costs. It would be unprofitable to accept Section 8 tenants without additional sources of income.
• It depends: Without knowing the exact debt service amount for a property in this ZIP code, it's impossible to definitively answer this question. You must calculate your property's specific debt service to make an informed decision.

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

• Above: If the market rent is higher than $1190, accepting only Section 8 tenants will result in lower revenue compared to renting to non-Section 8 tenants. However, the ZIP code remains viable if you can find properties where the FMR still clears the debt service.
• At: If the market rent equals the FMR, then Section 8 tenants will pay the market rate. This scenario presents neutral financial implications but ensures that your rental income is stable and predictable.
• Below: If the market rent is below $1190, Section 8 tenants could provide a more stable and higher income stream than market-rate tenants. This makes the ZIP code particularly attractive for Section 8 investments.
• It depends: The exact relationship between market rent and FMR is unknown. You need to research local rental rates to determine how they compare to the FMR.

3) Are renters' demand and days on market sufficient?

• Yes: If there is strong demand for rentals and properties are rented quickly, then the ZIP code is likely a good place to invest in Section 8. High demand and low vacancy periods indicate a robust rental market.
• No: If demand is weak and properties take a long time to rent, then the ZIP code might not be ideal for Section 8 investment. Landlords may struggle to fill vacancies with eligible tenants.
• It depends: The percentage of renters and the average days on market are unknown. You must assess the local rental market dynamics to determine if there is enough demand for Section 8 units.

The viability of investing in ZIP code 22848 for Section 8 properties hinges on these three factors. Ensure you have all the necessary data to make a sound decision.

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.