Section 8 Fair Market Rent (FMR) for ZIP 36123 - 2027

FY 2027 Fair Market Rent Rates

The market analysis for Section 8 investors in ZIP code 36123 reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $1080 for the fiscal year 2024. However, the market rent data is currently unavailable, which makes it difficult to provide a direct comparison. Based on the available FMR alone, we can infer that voucher tenants will likely cashflow at the FMR rate, but the exact margin will depend on the actual market rents once they become available.

The median home value in ZIP 36123 is also not provided, making it impossible to calculate an accurate rent-to-price ratio. This metric is crucial for understanding the relative affordability of renting versus buying in the area. Without the median home value, we cannot assess how competitive rental prices are compared to homeownership costs. It's important to note that the lack of median days on market (DOM) and the percentage of price cuts also hinders a comprehensive analysis of the local real estate market dynamics.

Despite these limitations, the strongest investor angle in ZIP 36123 appears to be cashflow, given the established FMR. Once the market rent data is available, investors can make more informed decisions about whether to focus on standard or premium units to ensure positive cashflow. Stability is also a significant factor, as the consistent FMR provides a reliable income stream. Appreciation potential cannot be assessed without additional data on property values and market trends.

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.