Section 8 Fair Market Rent (FMR) for ZIP 26886 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to purchase a property in ZIP code 26886 for Section 8 investment, follow these steps:

• Step 1: Debt Service Coverage - The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $870. This figure must be sufficient to cover the debt service on any property you plan to acquire. Without a specific property value, it's impossible to determine if this FMR clears the debt service. Therefore, your first question is: Does the FMR of $870 cover the debt service on your target property?
• Yes - Proceed to Step 2.
• No - Do not invest in this ZIP code for Section 8 purposes.
• Step 2: Market Rent Comparison - The average market rent in ZIP 26886, based on Census ACS data, is $914. Compare this against the FMR of $870.
  • Market Rent Above FMR ($914 > $870) - This indicates that properties can potentially command rents higher than the FMR, providing an opportunity for landlords to earn additional income beyond what is covered by Section 8 vouchers. Proceed to Step 3.
  • Market Rent Equal to or Below FMR ($914 ≈ $870 or $914 < $870) - This suggests that landlords may struggle to find tenants willing to pay more than the FMR, limiting potential profit margins. Consider other areas with higher market rents relative to FMR.
• Step 3: Demand Analysis - In ZIP 26886, 41.8% of residents are renters. However, without the number of days on the market (DOM), it's challenging to assess the overall demand accurately.
  • Adequate Demand (if DOM is low) - A low DOM combined with a significant percentage of renters (41.8%) implies strong demand for rental properties. This supports the viability of Section 8 investments in this ZIP code. The answer is Yes.
  • Limited Demand (if DOM is high) - High DOM values alongside a substantial renter population might indicate that finding tenants is difficult despite the interest in rentals. In this case, the answer is It Depends. Further investigation into the reasons behind long DOM periods would be necessary before making an investment decision.

In summary, the decision to invest in ZIP 26886 for Section 8 purposes hinges on whether the FMR covers your debt service, if the market rent exceeds the FMR, and finally, the strength of the rental demand. With the given data, if the FMR clears your debt service and market rent is above FMR, the ZIP code shows promise, but demand analysis is critical for a final yes or no.

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.