Section 8 Fair Market Rent (FMR) for ZIP 47122 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 47122

• Housing Authority of the City of New Albany (New Albany, IN) - 860 Section 8 vouchers

A decision tree for whether to invest in ZIP 47122 (Georgetown, IN) for Section 8 properties begins with the Fair Market Rent (FMR) of $1190 for the fiscal year 2024. This figure must be compared against the debt service of a property priced at $329,724.

Step 1: Does FMR of $1190 cover the debt service on a $329,724 property?

• Yes: If the FMR of $1190 is sufficient to cover the monthly mortgage payment, including principal, interest, taxes, and insurance, then you can proceed to the next step. The affordability of the property based on rental income is critical for maintaining profitability.
• No: If the FMR does not cover these expenses, purchasing a property in this ZIP code would result in a financial loss each month. It is not advisable to invest in this area under such conditions.

Step 2: Is the market rent of $982 (from Census ACS) above, at, or below the FMR?

• Above: If the market rent exceeds the FMR, landlords might consider renting outside of the Section 8 program to maximize income. However, this scenario is unlikely given the FMR and market rent figures.
• At: If market rents equal the FMR, landlords will find that they can rent out their properties at the FMR without losing potential tenants who prefer market rates.
• Below: If market rent is below the FMR, landlords can leverage the higher FMR to attract Section 8 tenants. This could be beneficial if the local market is underserved by affordable housing options.

Step 3: Do the 11.4% of renters and the unknown days on the market (DOM) indicate enough demand for Section 8 properties?

• It Depends: The percentage of renters at 11.4% suggests a moderate demand for rental properties. However, the lack of data on days on the market makes it challenging to assess how quickly properties are rented. If the rental market is competitive and there is a steady flow of Section 8 tenants, the investment could be viable despite the lower percentage of renters. Conversely, if the market is slow and competition is high, this ZIP code may not be ideal for a Section 8 portfolio.

To summarize, the decision to invest in ZIP 47122 for Section 8 properties hinges on the ability of the FMR to cover debt service costs, the comparison between market rent and FMR, and the overall demand for rentals. Ensure that the FMR covers your expenses and evaluate the market dynamics carefully before making an investment decision.

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.