Section 8 Fair Market Rent (FMR) for ZIP 36030 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 36030 for Section 8 purposes, follow this decision tree based on the provided data.

1) Does the Fair Market Rent (FMR) of $850 cover the debt service on a property?

• If the FMR of $850 does not cover the debt service on your property, the answer is No. You cannot afford to maintain the property under these conditions.
• If the FMR of $850 does cover the debt service, proceed to the next question.

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

• If the market rent is significantly above $850, consider whether you can find tenants willing to pay the difference between the market rate and the FMR. If not, the answer is No.
• If the market rent is around or slightly below $850, the answer is Yes. This indicates that the FMR is competitive with the market rent, making Section 8 a viable option.
• If the market rent is far below $850, the answer is It Depends. While the FMR might be higher than what the market offers, you need to assess the overall demand and competition for Section 8 tenants in the area.

3) Is there sufficient demand with 13.7% of renters and N/A-day Days On Market (DOM)?

• If the DOM is low (e.g., less than 30 days), the answer is Yes. The combination of a reasonable percentage of renters and quick turnover suggests strong demand for rental properties in this area.
• If the DOM is high (e.g., more than 90 days), the answer is No. A high DOM indicates weak demand or difficulty in finding tenants, which would make it challenging to manage a Section 8 property effectively.
• If the DOM is moderate (e.g., between 30-90 days), the answer is It Depends. You will need to evaluate other factors such as the local economy, employment rates, and the number of available Section 8 vouchers in the area.

In conclusion, purchasing a property in ZIP code 36030 for Section 8 use is feasible if the FMR covers your debt service and aligns closely with market rents. Additionally, ensure that the demand for rentals is strong, indicated by a low DOM. However, without specific DOM data, the final decision hinges on further investigation into local market conditions.

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.