Section 8 Fair Market Rent (FMR) for ZIP 24256 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When evaluating whether to purchase properties in ZIP code 24256 for Section 8 investment, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1,020 cover the debt service on a property valued at $104,373?

• Yes: The FMR is sufficient to clear the debt service on a property of this value. This means that the rental income at the FMR level can meet the mortgage payments and other financing costs.
• No: The FMR does not cover the debt service on a property of this value. This would make it financially unfeasible to invest in this area for Section 8 without additional considerations such as subsidies or lower property values.

2) How does the market rent of $810 compare to the FMR?

• Above: If the market rent were above the FMR, it would indicate that the local rental market is strong, potentially allowing for higher rents than the FMR. However, since the market rent is below the FMR, this point does not apply here.
• At: Not applicable given the current figures.
• Below: The market rent of $810 is below the FMR of $1,020, which suggests that the Section 8 program offers a higher rate than what the market currently demands. This can be beneficial for landlords as they receive a guaranteed income at the FMR level.

3) Is there enough demand with 25.0% of residents being renters and an unknown number of days on the market (DOM)?

• It Depends: With 25.0% of residents renting, there is a moderate level of demand. However, the lack of data regarding the average days on the market (DOM) makes it difficult to assess how quickly properties are typically rented out. A low DOM would suggest strong demand, while a high DOM might indicate challenges in finding tenants. Additionally, consider the percentage of residents who qualify for Section 8 benefits, which could impact the actual demand for your properties.

In conclusion, if the FMR of $1,020 can cover the debt service on a $104,373 property, then the answer is yes, you should consider buying here for Section 8. The fact that the market rent is below the FMR is advantageous. However, the decision ultimately depends on the demand, which is moderately present but requires further investigation into the DOM and the proportion of residents eligible for Section 8 to make a definitive assessment.

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.