Section 8 Fair Market Rent (FMR) for ZIP 28727 - 2027

FY 2027 Fair Market Rent Rates

The investment risk assessment for ZIP 28727 in Unknown, NC, reveals several potential issues that could impact a landlord's decision to participate in the Section 8 program. First, the tenant turnover rate poses a significant challenge. With the Fair Market Rent (FMR) set at $1560 for FY 2024, there is a notable gap between this figure and the local market rent, which is currently unavailable. This discrepancy can lead to higher turnover rates if tenants find it difficult to secure housing within their budget.

Vacancy exposure is another critical concern. The Days on Market (DOM) data is also unavailable, making it challenging to predict how long properties might remain vacant before finding a tenant. This uncertainty can result in financial losses due to prolonged vacancies, especially if the rental market is tight and competition for tenants is high.

Deferred maintenance exposure is a significant risk factor. Without specific data on the typical home values and median incomes in ZIP 28727, landlords must be cautious about the potential for properties to fall into disrepair. Section 8 tenants often have limited resources, which can lead to deferred maintenance and increased repair costs over time.

However, these risks are somewhat mitigated by the high renter share in the area. Although the exact percentage is not available, a high concentration of renters typically indicates a strong demand for subsidized housing, including vouchers. This demand can help ensure a steady stream of qualified tenants looking to utilize Section 8 benefits.

Verdict: Moderate risk for a first-time Section 8 landlord.

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.