Section 8 Fair Market Rent (FMR) for ZIP 24658 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 24658 (Unknown, VA) for Section 8 investments, follow this decision tree:

1) Does FMR $910 (metro FY 2026) clear debt service on a property?

• Yes: If the Fair Market Rent (FMR) of $910 per month is sufficient to cover the total monthly mortgage payment, insurance, taxes, and maintenance costs of the property, then you can proceed to the next question. This ensures that your investment will be financially viable under Section 8 guidelines.
• No: If the FMR does not cover the debt service, purchasing in this area is not advisable. The rental income would not be enough to sustain the property financially.
• It Depends: Without specific property details, it's impossible to definitively answer this question. You need to calculate the total monthly expenses for any potential property and compare them against the FMR.

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

• Above FMR: If the average market rent in 24658 exceeds the FMR of $910, consider whether the higher rents justify the investment. Properties might be harder to fill with Section 8 tenants due to the subsidy cap.
• At FMR: If the market rent equals the FMR, you can expect stable occupancy rates with Section 8 tenants. This scenario presents a balanced opportunity for investment.
• Below FMR: If the market rent is below the FMR, there is less risk of the property being overpriced for Section 8 subsidies. However, this also indicates lower potential rental income compared to other areas.

3) Are the number of renters and days on market (DOM) sufficient?

• Yes: If the percentage of renters in the area is high and the average DOM is low, this suggests strong demand for rental properties. High demand can lead to faster property turnover and potentially higher occupancy rates.
• No: If the percentage of renters is low and the DOM is high, there is likely insufficient demand to support a Section 8 investment. The property may struggle to attract tenants or maintain occupancy.
• It Depends: Without specific figures on the percentage of renters and DOM, it's challenging to make a definitive judgment. Analyze local rental trends and competition to gauge demand accurately.

The decision to invest in ZIP 24658 hinges on these factors. Ensure that the FMR clears debt service, understand how market rents compare to the FMR, and assess the local rental demand before making an informed 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.