Section 8 Fair Market Rent (FMR) for ZIP 37238 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 37238 for Section 8 purposes, follow this decision tree:

Step 1: Can the Fair Market Rent (FMR) of $1650 cover the debt service on your property?

• No: Do not purchase. The FMR is insufficient to cover the costs associated with owning the property.
• Yes: Proceed to Step 2.

Step 2: What is the relationship between the market rent and the FMR of $1650?

• Market Rent is Below FMR: Purchase. This indicates that the FMR is higher than what the market currently offers, which can be advantageous for Section 8 landlords.
• Market Rent is Equal to FMR: It depends. Evaluate other factors such as demand and competition before making a decision.
• Market Rent is Above FMR: Do not purchase. The higher market rent suggests that there might be better opportunities for non-Section 8 tenants, who could pay more.

Step 3: Is the percentage of renters combined with the days on market (DOM) sufficient to meet demand?

• N/A% Renters + N/A-Day DOM: It depends. Without specific data on the percentage of renters and the DOM, it's difficult to assess the demand accurately. Investigate further into local rental trends and vacancy rates.

Note: The analysis is limited due to missing data points such as the exact market rent, percentage of renters, and DOM. For a complete assessment, these details are crucial. Ensure you have all necessary information before proceeding with any investment decisions.

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.