Section 8 Fair Market Rent (FMR) for ZIP 29831 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 29831

• HOUSING AUTHORITY OF AIKEN (Aiken, SC) - 1,059 Section 8 vouchers

A skeptical investor looking into ZIP code 29831 might raise several concerns regarding the feasibility of investing in properties there under the Section 8 program. Let's address these objections with the available data.

• Will FMR $920 (zip FY 2024) cover the mortgage on a $123,170 home? The Fair Market Rent (FMR) for ZIP 29831 in fiscal year 2024 is set at $920. This figure represents the average monthly rent that a landlord could expect from a tenant participating in the Section 8 program. To determine if this amount will sufficiently cover the mortgage, one must consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly payment on a $123,170 home would be approximately $600. Therefore, the FMR of $920 is more than sufficient to cover the mortgage, leaving a margin of $320 per month for other expenses such as property taxes, insurance, and maintenance.

• Is there enough renter demand at 23.3%? The rental demand in ZIP 29831 stands at 23.3%. While this percentage might seem low, it indicates that nearly one-quarter of the housing units are rented out. This level of demand can support Section 8 investments, especially considering that the program guarantees a steady income stream. However, the data does not provide a detailed breakdown of how many of those renters are interested in Section 8 housing. It's important for investors to conduct further research on the local demand for subsidized housing.

• Will vouchers keep pace with $725 market rents? The voucher amount in ZIP 29831 is set at $920, which is above the market rent of $725. This means that landlords participating in the Section 8 program can expect to receive a higher rent than what is typically charged in the area. The excess amount helps mitigate any potential risks associated with lower market rents. Nevertheless, the data does not specify future adjustments or inflation rates that could affect both voucher amounts and market rents over time. Investors should monitor these factors to ensure long-term financial stability.

The data provides a solid foundation for addressing common investor concerns, but it's crucial to remain vigilant about changes in the local housing market and the broader economic environment.

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.