Section 8 Fair Market Rent (FMR) for ZIP 38174 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should buy in ZIP code 38174 for Section 8 purposes, follow these steps:

• Step 1: Does the Fair Market Rent (FMR) of $1300 cover the debt service on a property?
• If yes: Proceed to Step 2.
• If no: Do not purchase in this area. The FMR does not sufficiently cover the cost of ownership.
• Step 2: Is the market rent above, at, or below the FMR of $1300?
• If market rent is above FMR: It depends on the specific rental dynamics and competition. Further analysis is required.
• If market rent is at or below FMR: Proceed to Step 3.
• Step 3: Are there sufficient renters and days on the market (DOM) to meet demand?
• If the percentage of renters and DOM indicate strong demand: Consider purchasing in this area. The combination of factors suggests that properties can be rented out effectively.
• If the percentage of renters and DOM do not indicate strong demand: Do not purchase in this area. There is insufficient evidence that the property will be rented out at an acceptable rate.

Note: The specific percentages of renters and DOM were not provided in the data. These figures are critical for making a final decision and must be obtained for a thorough analysis.

The decision tree hinges on the ability of the FMR to support the financial obligations of property ownership, the comparative level of market rent, and the overall demand for rentals in the area. Without precise market rent and demand figures, the recommendation remains conditional.

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.