Section 8 Fair Market Rent (FMR) for ZIP 34991 - 2027

FY 2027 Fair Market Rent Rates

When considering whether to purchase a property in ZIP code 34991 for Section 8 investment, follow this decision tree:

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

• Yes: If the FMR of $1520 is sufficient to cover the mortgage and other financing costs, then you can proceed to the next step.
• No: If the FMR of $1520 does not cover the debt service, purchasing a property in ZIP 34991 for Section 8 would be financially unviable. Do not invest.
• It Depends: This scenario arises if you do not know the exact debt service amount for your potential property. You must calculate the debt service and compare it against the FMR of $1520 to make an informed decision.

2) Is the market rent above, at, or below the FMR of $1520?

• Above: If the market rent exceeds $1520, then the property is likely to be attractive to both Section 8 tenants and private market renters. This diversifies your tenant base and reduces risk.
• At: If the market rent is exactly $1520, the property will only attract Section 8 tenants, which means you are entirely dependent on the program for occupancy. This could be acceptable if you are specifically targeting Section 8 tenants.
• Below: If the market rent is below $1520, the property may struggle to find private market renters. It could still work if you are willing to exclusively rent to Section 8 tenants.

3) Are the percentage of renters and the days on market (DOM) indicative of enough demand?

• Yes: If there is a high percentage of renters in the area and the DOM is low, indicating quick leasing, there is strong demand for rental properties in ZIP 34991. This makes it a good location for Section 8 investments.
• No: If the percentage of renters is low and the DOM is high, indicating slow leasing, demand for rentals may not be robust enough to support a Section 8 property.
• It Depends: Without specific data on the percentage of renters and the DOM, it's unclear how competitive the rental market is. Investigate further to determine if the demand is sufficient.

Note: The lack of specific data points for market rent, percentage of renters, and DOM means that some branches of the decision tree cannot be definitively answered without additional research. However, the FMR figure provides a clear threshold for evaluating debt service coverage.

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.