Section 8 Fair Market Rent (FMR) for ZIP 26568 - 2027

Investment Score for ZIP 26568

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 26568 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns with the available data.

• Will FMR $940 (metro FY 2026) cover the mortgage on a $104,378 home? The Fair Market Rent (FMR) of $940 per month is a critical figure for understanding the potential rental income. However, whether this amount can sufficiently cover the mortgage depends on the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average rate, the monthly payment on a $104,378 home could be around $420. This means that the FMR would indeed cover the mortgage, leaving a surplus of approximately $520 per month. This surplus can be used to cover other expenses such as property taxes, insurance, maintenance, and desired profit margins.
• Is there enough renter demand at 11.5%? The 11.5% represents the share of renters in ZIP 26568. While this percentage might seem low, it is important to note that the actual number of renters can still be substantial depending on the total population. For instance, if the total population is 10,000, then 1,150 households are renters. The key is to understand the local rental market dynamics. If the area has a growing workforce or is near educational institutions, the demand could be higher than expected. However, the data does not provide specifics on the growth trends or types of renters in the area, so further investigation into local demographics and job markets would be necessary to confirm strong demand.
• Will vouchers keep pace with N/A market rents? The data indicates that the voucher coverage is unknown (N/A), which is a significant concern for investors relying on Section 8 funding. Vouchers are crucial because they ensure a steady stream of income even when market rents fluctuate. Without specific information on how voucher amounts are adjusted over time, it is difficult to predict their ability to keep up with inflation and rising market rents. It is advisable to research the historical trends of voucher adjustments in the region to better assess future stability and profitability.

In summary, while the FMR of $940 can cover the mortgage on a $104,378 home, the lack of detailed information on renter demand and voucher coverage introduces uncertainties. Landlords and small-portfolio investors should conduct additional research to make informed decisions.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.