Section 8 Fair Market Rent (FMR) for ZIP 70170 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should buy in ZIP 70170 (Unknown, LA) for Section 8 purposes, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1390 cover the debt service on a property?

• Yes: If the FMR of $1390 per month is sufficient to cover your mortgage payments, property taxes, insurance, and other expenses, then it makes financial sense to consider purchasing a property here for Section 8 tenants.
• No: If the FMR does not cover your debt service costs, purchasing a property in ZIP 70170 for Section 8 would result in a financial loss. You should look for areas where the FMR is higher or where your debt service is lower.

2) How does the market rent compare to the FMR?

• Above FMR: If the market rent is higher than the FMR of $1390, you can potentially earn more by renting to non-Section 8 tenants. This might make Section 8 less attractive unless you prioritize stable income over higher returns.
• At FMR: If the market rent is around the FMR, there is little difference between renting to Section 8 tenants and non-Section 8 tenants. In this case, the decision will depend more on the stability and reliability of Section 8 income versus the potential risks of private market fluctuations.
• Below FMR: If the market rent is below the FMR, Section 8 becomes a more attractive option since it guarantees a rent level that is higher than what you could likely get from non-subsidized tenants.

3) Is the demand sufficient?

• It depends: The provided data lacks specifics on the percentage of renters and the days on market (DOM) in ZIP 70170. However, generally speaking, if a significant portion of residents are renters and the DOM is low, this indicates strong demand and a good environment for rental properties. Conversely, if the DOM is high and the percentage of renters is low, demand may be insufficient to support a Section 8 investment.

Note: The decision to invest in Section 8 properties in ZIP 70170 should be made based on a thorough analysis of the local real estate market, including factors such as vacancy rates, the supply of rental units, and the local economy's health. Additionally, consider the administrative requirements and the long-term outlook for Section 8 funding and regulations.

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.