Section 8 Fair Market Rent (FMR) for ZIP 39166 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$780
1 Bedroom	$820
2 Bedrooms	$940
3 Bedrooms	$1,220
4 Bedrooms	$1,290
5 Bedrooms	$1,496
6 Bedrooms	$1,676
7 Bedrooms	$1,810
8 Bedrooms	$1,901

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The search results did not provide specific data for ZIP 39166 regarding the gap between the Fair Market Rent (FMR) and the actual market rent. However, based on the provided data that the FMR for ZIP 39166 in fiscal year 2024 is $930, and the market rent is $525 according to the Census ACS, we can calculate the gap and analyze its implications.

The gap between the FMR of $930 and the market rent of $525 in ZIP 39166 is $405, which represents an 77.14% difference. This significant disparity means that landlords accepting Section 8 vouchers in this area are effectively subsidizing the rent by $405 per month, a substantial amount given the local economic conditions.

ZIP 39166 has a median home value of $121,172 and a median income of $58,833. With only 15.3% of residents being renters, the market for rental properties is relatively small. This context makes it clear that landlords who accept Section 8 vouchers are playing a yield game. They are likely to be compensated through government subsidies, which can help offset the lower rents charged to voucher holders.

The high subsidy rate also suggests that landlords might face financial challenges if they were to charge open-market rates. The discrepancy between what the government deems as fair market rent and what the local market can support indicates a need for subsidies to keep rental units affordable for low-income families. Landlords who participate in the Section 8 program are thus crucial in providing housing that meets the needs of these families at rates they can afford.

In summary, the gap of $405 or 77.14% between the FMR and the market rent in ZIP 39166 highlights the importance of government assistance in maintaining a stable rental market. Landlords who accept Section 8 vouchers are making a strategic decision to participate in a yield play, supported by federal subsidies, rather than attempting to compete with higher, potentially unaffordable market rates.

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.