Section 8 Fair Market Rent (FMR) for ZIP 27114 - 2027

FY 2027 Fair Market Rent Rates

To decide whether to invest in ZIP 27114 (Unknown, NC) for Section 8 properties, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

• If the Fair Market Rent (FMR) of $1140 does not cover the debt service on a property, the answer is No. Do not proceed further.
• If the FMR of $1140 covers the debt service, move to Step 2.

Step 2: Market Rent Comparison

• If the market rent is above $1140, consider the following:
  • The property may be overpriced for Section 8 tenants. This could lead to low occupancy rates. The answer is No.
• If the market rent is at or slightly below $1140, proceed to Step 3.

Step 3: Demand Analysis

• If the percentage of renters and days on market (DOM) indicate strong demand, the answer is Yes. Strong demand means a high percentage of renters and a low DOM, suggesting that rental properties are quickly occupied.
• If the percentage of renters and DOM suggest weak demand, the answer is No. Weak demand is characterized by a low percentage of renters and a high DOM, indicating that it might be difficult to find tenants willing to pay the FMR.
• If the demand is moderate, the answer is It Depends. Moderate demand would mean an average percentage of renters and DOM. In this case, additional factors such as location within the ZIP code, property condition, and competition must be considered.

Note: Due to incomplete data regarding market rent, percentage of renters, and DOM, specific numerical values cannot be provided. However, the decision tree above guides you through the logical process needed to make an informed investment decision based on the available FMR and other critical metrics.

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.