Section 8 Fair Market Rent (FMR) for ZIP 62022 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering Section 8 properties in ZIP 62022 might raise several valid concerns. Here, we address those key points with available data.

• Will FMR $1040 (zip FY 2024) cover the mortgage on a $241,471 home? The Fair Market Rent (FMR) for ZIP 62022 is set at $1040 for fiscal year 2024. To determine if this will sufficiently cover the mortgage on a median-priced home valued at $241,471, we must consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on such a property would be approximately $1,280. This means that the FMR alone does not cover the mortgage payment, leaving a shortfall of roughly $240 per month. However, it's important to note that this analysis does not account for potential tax benefits, property appreciation, or other financial incentives that could offset the initial cost.
• Is there enough renter demand at 29.4%? The rental vacancy rate in ZIP 62022 stands at 29.4%. This figure suggests a relatively high level of available rental units compared to the number of renters. A high vacancy rate can indicate weak demand, which is a concern for landlords. However, it also implies that there might be opportunities to negotiate lower rents or offer incentives to attract tenants, potentially balancing out the higher vacancy rates. Additionally, the percentage alone doesn't tell us about the total number of renters or the dynamics of the local housing market, so further investigation into these factors would be prudent.
• Will vouchers keep pace with N/A market rents? Unfortunately, the data provided does not include specific information regarding the current market rents in ZIP 62022, making it difficult to assess whether voucher amounts will keep up with the actual cost of renting. In general, the effectiveness of Section 8 vouchers depends on how closely they align with the prevailing market rents. If the voucher amount is significantly lower than what landlords are charging, it could lead to fewer rental options for voucher holders and potentially less interest from landlords. It's advisable to monitor local rental trends and consult with local housing authorities to stay informed about any adjustments to voucher amounts.

The analysis above highlights some challenges but also potential opportunities for landlords and small-portfolio investors in ZIP 62022. While the FMR may not fully cover the mortgage, the rental market offers a mix of risks and rewards that can be navigated with careful planning and consideration of all financial factors.

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.