Section 8 Fair Market Rent (FMR) for ZIP 28410 - 2027

FY 2027 Fair Market Rent Rates

To decide whether you should invest in ZIP code 28410 for Section 8 properties, follow this decision tree based on the available data:

1) Does the Fair Market Rent (FMR) of $1520 cover your debt service on a property?

• Yes: If the FMR of $1520 can fully cover the debt service of your potential investment, then proceed to the next question. This means that Section 8 tenants would be able to pay enough to meet your mortgage obligations.
• No: If the FMR does not clear your debt service, investing in this ZIP code under the Section 8 program is not financially viable. You must ensure that the rental income covers all costs associated with the property, including mortgage payments.

2) How does the market rent compare to the FMR?

• Above FMR: If the market rent exceeds the FMR of $1520, consider if the difference is significant enough to justify the lower income from Section 8 tenants. Non-Section 8 tenants might offer higher rents but could also increase vacancy risks.
• At or Below FMR: If market rent is at or below the FMR, Section 8 properties are competitive and likely to attract tenants. This makes the ZIP code a good candidate for Section 8 investments.

3) Is there sufficient demand with the given percentage of renters and days on the market (DOM)?

• Enough Demand: If the percentage of renters and DOM indicate strong demand, then you should feel confident about investing in Section 8 properties. A high percentage of renters and low DOM suggest that finding and retaining tenants will be easier.
• Insufficient Demand: If the percentage of renters is low and DOM is high, it implies weak demand, making it harder to fill vacancies and potentially less profitable. In this case, investing in Section 8 properties would be risky without further investigation into local economic conditions and housing trends.

The viability of purchasing properties in ZIP 28410 for Section 8 depends on how these factors align with your investment goals and risk tolerance. Ensure that the FMR clears your debt service, assess the competitiveness of market rents, and evaluate the strength of local demand before making a decision.

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.