Section 8 Fair Market Rent (FMR) for ZIP 25719 - 2027

FY 2027 Fair Market Rent Rates

The decision to invest in ZIP 25719 for Section 8 properties hinges on three key factors based on the Fair Market Rent (FMR) of $950 for the fiscal year 2024.

Step 1: Can the FMR of $950 cover the debt service on a property in ZIP 25719?

• Yes: If the FMR of $950 exceeds the total debt service (including mortgage payments, property taxes, insurance, and maintenance costs), then the property is financially viable for Section 8 tenants. Proceed to Step 2.
• No: If the FMR of $950 does not cover the debt service, investing in ZIP 25719 for Section 8 is not advisable due to financial losses.

Step 2: How does the market rent compare to the FMR of $950?

• Above: If the market rent is higher than $950, landlords might consider renting to non-Section 8 tenants to maximize income. However, they must ensure that the property can still be rented out at the higher rate.
• At: If the market rent equals $950, the property is perfectly aligned with Section 8 standards. This scenario presents a balanced investment opportunity.
• Below: If the market rent is below $950, landlords should focus on attracting Section 8 tenants. The lower market rent means that the FMR will provide a better income margin.

Step 3: Is there sufficient demand for rental properties in ZIP 25719?

• It Depends: With the percentage of renters and days on market (DOM) being unknown, the viability of the investment is uncertain. To make an informed decision, landlords need to research local vacancy rates and tenant demand. If the percentage of renters is high and the DOM is low, there is likely strong demand. Conversely, if the percentage of renters is low and the DOM is high, demand is weak, making the investment less attractive.

To conclude, the feasibility of purchasing a property in ZIP 25719 for Section 8 tenants depends on whether the FMR of $950 covers the debt service, how the market rent compares to the FMR, and the overall demand for rentals. Landlords must assess these factors carefully to determine the profitability and sustainability of their investment.

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.