Section 8 Fair Market Rent (FMR) for ZIP 27807 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 27807

• Housing Authority of the City of Wilson (Wilson, NC) - 784 Section 8 vouchers
• Nash-Edgecombe Economic Development, Inc. (Rocky Mount, NC) - 592 Section 8 vouchers

To determine if a landlord should invest in ZIP 27807 (Bailey, NC) for Section 8 properties, follow these steps:

Step 1: Evaluate the Fair Market Rent (FMR) against the debt service coverage ratio (DSCR).

• If the FMR of $970 per month does not cover the DSCR for a property priced at $277,936, then the answer is No. This means that the rental income generated would not be sufficient to meet the financial obligations of owning the property.
• If the FMR of $970 does cover the DSCR, proceed to the next step.

Step 2: Compare the market rent to the FMR.

• If the market rent of $897 is below the FMR of $970, then the answer is Yes. Landlords can expect to receive higher rents from Section 8 tenants compared to the average market rent.
• If the market rent is equal to or above the FMR, the answer is It Depends. The landlord will need to consider other factors such as the vacancy rate and the competition for Section 8 tenants.

Step 3: Assess the rental demand in the area.

• The ZIP code has a rental population of 19.0%, which indicates a moderate level of demand. However, the lack of data on days on market (DOM) suggests an uncertainty in how quickly properties can be rented out.
• If the landlord finds that the rental demand is robust despite the missing DOM data, then the answer is Yes. There is enough demand to justify investment.
• If the rental demand appears weak or if the landlord is concerned about the missing DOM data, then the answer is No. The risk of long-term vacancies outweighs the potential benefits of investing in this ZIP code.
• If the rental demand is moderately strong and the landlord is willing to take on some risk, then the answer is It Depends. Additional research into local rental trends and competition might be necessary to make a fully informed decision.

In conclusion, the decision to buy in ZIP 27807 for Section 8 purposes hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the overall rental demand. Use the provided data points to guide your analysis and make an informed choice.

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.