Section 8 Fair Market Rent (FMR) for ZIP 29146 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering ZIP 29146 for Section 8 investments must navigate a series of critical questions to make an informed decision.

Step 1: Can the Fair Market Rent (FMR) of $920 cover the debt service on a property valued at $107,637?

• Yes: If the landlord's debt service (the total of monthly mortgage payments and other financing costs) is less than $920, then the FMR can support the investment. This means that even if the property is rented out exclusively under Section 8 vouchers, the landlord would still be able to meet their financial obligations.
• No: If the debt service exceeds $920, then the FMR alone cannot cover these costs. The landlord would need to consider additional sources of income or subsidies to ensure profitability.
• It Depends: If the debt service is close to $920, the landlord should evaluate other factors such as potential for rental increases or the possibility of renting to non-Section 8 tenants who might pay higher rents.

Step 2: How does the market rent of $843 compare to the FMR?

• Market Rent Below FMR: At $843, the market rent is below the FMR of $920, which indicates that Section 8 tenants could potentially pay more than what the average market tenant pays. This suggests a favorable position for landlords who are willing to participate in the Section 8 program.
• Market Rent Equal to FMR: If market conditions change and the market rent equals the FMR, landlords will face competition with non-Section 8 properties. However, the stability of Section 8 rents and the guaranteed payment structure remain attractive.
• Market Rent Above FMR: If the market rent were to rise above the FMR, landlords might find themselves at a disadvantage unless they can secure non-Section 8 tenants willing to pay higher rents.

Step 3: Is there sufficient demand with 25.5% of residents being renters and the number of days on the market (DOM) being listed as N/A?

• Yes: With 25.5% of residents being renters, there is a notable demand for rental properties. The lack of data on DOM could mean that listings are quickly rented, indicating strong interest from tenants. Given the market rent is below the FMR, the demand for affordable housing could be high, making Section 8 a viable option.
• No: If the percentage of renters were significantly lower, or if the DOM indicated long periods before properties were rented, the demand for rental properties would be questionable. However, the current data suggests a stable demand scenario.
• It Depends: Without specific DOM data, landlords should research further into the local rental market trends. If recent trends show a decrease in rental activity, it might impact the decision. Otherwise, the combination of the FMR being higher than the market rent and a quarter of the population renting supports a positive outlook.

In conclusion, ZIP 29146 presents a mix of favorable and uncertain factors for Section 8 investments. Landlords must weigh their ability to cover debt service against the FMR, assess the comparative advantage of FMR over market rent, and gauge the strength of local demand based on available data.

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.