Section 8 Fair Market Rent (FMR) for ZIP 36562 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Skeptical investors looking at ZIP 36562 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these objections directly with the available data.

• Will FMR $1090 (zip FY 2024) cover the mortgage on a $184,027 home? The Fair Market Rent (FMR) for ZIP 36562 in fiscal year 2024 is set at $1090 per month. To determine if this will sufficiently cover a mortgage payment, we need to consider the prevailing interest rates and loan terms. Assuming an average interest rate of 4% and a 30-year fixed-rate mortgage, the monthly principal and interest payment on a $184,027 home would be approximately $890. This means that the FMR of $1090 would indeed cover the mortgage, leaving a buffer of around $200 per month for maintenance, property taxes, and other expenses. However, it's important to note that property taxes and insurance can vary widely, so these should be factored into your overall budgeting.
• Is there enough renter demand at 16.4%? With a rental rate of 16.4%, it's clear that the majority of households in ZIP 36562 own their homes rather than renting. This could suggest a lower demand for rental properties. Yet, the percentage of renters does not tell the whole story. It's crucial to look at the total number of households and the growth trends in the area. If the population is increasing, even a small percentage of renters could represent a significant number of potential tenants. Unfortunately, the provided data does not include the total number of households or recent population growth trends, so a precise assessment of demand cannot be made solely based on this figure. Investors should conduct additional research to understand local demographics and housing needs.
• Will vouchers keep pace with N/A market rents? The data indicates that the market rents in ZIP 36562 are not provided, which makes it challenging to assess whether voucher amounts will match the cost of renting. Typically, the Housing Choice Voucher Program aims to ensure that voucher recipients pay no more than 30% of their adjusted income toward rent. However, without specific market rent data, it's impossible to definitively state if vouchers will cover the necessary costs. The best course of action is to monitor local rental trends and consult with local housing authorities to stay informed about any adjustments to voucher amounts.

In conclusion, while the FMR of $1090 appears sufficient to cover the mortgage on a $184,027 home, the rental demand and voucher adequacy remain uncertain due to incomplete data. Conducting further analysis and staying updated with local housing conditions will help mitigate these uncertainties.

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.