Section 8 Fair Market Rent (FMR) for ZIP 43772 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering purchasing a property in ZIP code 43772 for Section 8 purposes should follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

• If the landlord can acquire a property for $132,155 or less, the Fair Market Rent (FMR) of $970 per month for the metro area in fiscal year 2026 can cover the debt service. This assumes a standard DSCR where the rental income must exceed the mortgage payments.
• If the acquisition cost exceeds $132,155, then the FMR will not clear the debt service, leading to a negative cash flow situation. In this case, the answer is No.

Step 2: Market Rent Comparison

• The market rent in ZIP 43772, according to Census ACS data, is $882 per month. This is below the FMR of $970, indicating that Section 8 tenants could potentially pay higher rents than the average market rate.
• If the landlord's goal is to maximize rent income, Section 8 properties might offer better returns compared to market-rate rentals.

Step 3: Demand Analysis

• In ZIP 43772, 30.5% of residents are renters. However, the Days on Market (DOM) data is not available, which makes it difficult to assess the speed at which rental properties are typically leased.
• Given the 30.5% rental rate, there is a significant portion of the population seeking rental housing, suggesting potential demand for Section 8 properties.
• Without DOM data, the landlord must consider other factors such as local vacancy rates and competition to determine if the demand is sufficient. If these factors indicate strong demand, the answer leans towards Yes. Otherwise, it depends on the landlord's risk tolerance and investment strategy.

To summarize, if the property price is $132,155 or less and the landlord is comfortable with the demand analysis despite the lack of DOM data, then investing in Section 8 properties in ZIP 43772 is advisable. The higher FMR compared to market rent provides a financial incentive. However, if the property costs more than $132,155 or if the landlord finds the demand insufficient based on additional research, the investment is not recommended.

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.