Section 8 Fair Market Rent (FMR) for ZIP 27544 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 27544

• Franklin-Vance-Warren Opportunity, Inc. (Henderson, NC) - 586 Section 8 vouchers
• Oxford Housing Authority (Oxford, NC)
• Vance County Housing Authority (Henderson, NC)

A landlord considering ZIP 27544 for Section 8 investments must follow a structured decision-making process. Here’s how to proceed:

Step 1: Debt Service Coverage Ratio (DSCR)

• If the Fair Market Rent (FMR) of $1280 for the fiscal year 2024 can cover the debt service on a property valued at $240,537, then the first criterion is met. This means that the rental income must be sufficient to pay off any mortgage or loan payments associated with the property.

Step 2: Market Rent vs. FMR

• The market rent in ZIP 27544 is $787 according to the Census ACS data. Compare this figure to the FMR of $1280. If the market rent is below the FMR, there is an opportunity to increase rent to the FMR level without losing tenants, which is beneficial for landlords.
• If the market rent equals the FMR, landlords will not benefit from additional rent increases beyond what is already being charged.
• If the market rent exceeds the FMR, landlords might struggle to find tenants willing to pay the higher market rate but limited by the lower FMR subsidy.

Step 3: Demand Assessment

• The percentage of renters in ZIP 27544 is 20.0%. Additionally, the Days on Market (DOM) is listed as N/A, indicating either insufficient data or that the metric isn’t applicable or tracked in this context. With a clear 20.0% of residents being renters, there is a defined demand for rental properties.
• However, the lack of DOM data makes it challenging to assess how quickly properties are typically rented out. Without this information, landlords must rely on other indicators such as vacancy rates or local economic trends to gauge demand.

Decision Outcome

• Yes: If the FMR covers the debt service and the market rent is below the FMR, and there is a significant number of renters, investing in ZIP 27544 for Section 8 properties could be profitable.
• No: If the FMR does not cover the debt service, or if the market rent is significantly above the FMR, making it hard to attract tenants, then purchasing properties in this ZIP code would not be advisable.
• It Depends: If the FMR is close to covering the debt service, or if the market rent is near the FMR, and the demand assessment is positive but lacks crucial DOM data, landlords should consider supplementary research on local rental dynamics before making a decision.

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.