Section 8 Fair Market Rent (FMR) for ZIP 79116 - 2027

FY 2027 Fair Market Rent Rates

To integrate ZIP 79116 into a Section 8 portfolio strategy, it's essential to consider the financial metrics available. The Fair Market Rent (FMR) for a one-bedroom apartment in ZIP 79116 for fiscal year 2024 is set at $1020. This figure is crucial for determining whether the area serves as a cash-flow anchor, an appreciation play, or a diversifier.

Given the lack of specific data on market values, median home values, price-cut shares, days on market (DOM), renter shares, and median income, we must rely on the FMR to guide our analysis. In the absence of market data, ZIP 79116 stands out as a potential cash-flow anchor within a Section 8 portfolio. This designation is based on the guaranteed rental income that aligns with the government-set FMR, providing stability and predictability to the overall investment strategy.

The cash-flow anchor role is particularly compelling because it ensures a steady stream of income through Section 8 vouchers. Landlords can count on receiving the full FMR amount of $1020 per month for a one-bedroom unit, without the typical fluctuations seen in the broader real estate market. This makes ZIP 79116 a reliable component of a diversified Section 8 portfolio, designed to mitigate risk and provide consistent returns.

While the appreciation potential and diversification benefits cannot be fully assessed due to incomplete data, the cash-flow anchor role remains a solid foundation for investment. It supports the broader strategy by offering predictable income, which can help offset any losses or underperformance from other parts of the portfolio.

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.