Section 8 Fair Market Rent (FMR) for ZIP 27559 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 27559

• Chatham County Housing Authority (Siler City, NC) - 506 Section 8 vouchers

To determine if a landlord should buy in ZIP code 27559 for Section 8 purposes, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1210 cover the debt service on a $395,577 property?

• Yes: The FMR is sufficient to clear the debt service on a property valued at $395,577. This indicates that a landlord can potentially manage the property's financial obligations while receiving Section 8 subsidies.
• No: The FMR of $1210 does not cover the debt service on a property worth $395,577. This suggests that relying solely on Section 8 rents would not be financially viable, as the landlord would need additional income sources or consider properties with lower values.
• It Depends: This scenario is unlikely given the specific figures. However, if there were variations in the debt service calculation, it could affect the outcome. Typically, though, a clear yes or no will emerge based on the FMR and property value.

2) Is the market rent of $1,310 above, at, or below the FMR?

• Above: The market rent of $1,310 exceeds the FMR of $1210. Landlords might consider renting to non-Section 8 tenants to maximize income potential.
• At: If the market rent equaled the FMR, landlords would face neutral conditions where neither Section 8 nor market rents offer a significant advantage over the other.
• Below: The market rent being below the FMR is not applicable here since $1,310 is higher than $1210. In such cases, landlords would find renting to non-Section 8 tenants more profitable.

3) Are 13.9% renters plus the unknown days on market (DOM) indicative of enough demand?

• Yes: If the days on market (DOM) are low, indicating quick rental turnovers, then the 13.9% of renters suggest sufficient demand exists. This means landlords can expect their units to be occupied relatively quickly, ensuring steady cash flow.
• No: If the DOM is high, it implies difficulty in finding tenants, even among the 13.9% of renters. High DOM could signal a weak rental market, making it less attractive for landlords to invest in Section 8 properties.
• It Depends: Without specific DOM data, the decision is unclear. A detailed analysis of the local rental market trends and vacancy rates would be necessary to make an informed decision about the viability of investing in Section 8 properties in ZIP 27559.

Based on these criteria, landlords can make an informed decision whether to pursue Section 8 investments in ZIP 27559. The key is to ensure that the FMR clears debt service, assess whether market rents provide a better return, and evaluate the rental demand relative to the days on market.

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.