Section 8 Fair Market Rent (FMR) for ZIP 85030 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should invest in ZIP 85030 (Unknown, AZ) for Section 8 properties, follow this decision tree:

1) Does FMR $1880 (zip FY 2024) cover the debt service on a property?

• Yes: If your debt service on a property is less than $1880, then the Fair Market Rent (FMR) can cover it. This means that tenants receiving Section 8 vouchers can afford to pay the required portion of the rent.
• No: If your debt service exceeds $1880, the FMR will not be sufficient to cover the costs. Investing in this ZIP code under these conditions would not be financially viable for Section 8 properties.
• It Depends: The exact amount of your debt service is needed to make a definitive decision. Without this figure, it's impossible to know if the FMR can adequately support the property's financial obligations.

2) Is market rent above, at, or below FMR?

• Above: If the market rent is higher than $1880, then Section 8 tenants might struggle to find suitable housing options unless they contribute additional income towards rent. This could limit the pool of potential tenants.
• At: If market rent equals the FMR, then Section 8 tenants can easily find housing within their budget. This scenario indicates a balanced market for Section 8 properties.
• Below: If market rent is lower than $1880, landlords could potentially charge closer to the FMR without deterring tenants, thus maximizing income. However, since the market rent is not specified, it's unclear how it compares to the FMR.

3) Are there enough renters and days on the market (DOM) to ensure demand?

• Enough Demand: If the percentage of renters and the DOM indicate strong demand, then properties in ZIP 85030 could be attractive for Section 8 investments. However, without specific percentages and DOM figures, it's challenging to assess the level of demand accurately.
• Limited Demand: If the percentage of renters is low and DOM is high, it suggests that there might not be sufficient demand for rental properties, including those participating in the Section 8 program.
• It Depends: The exact percentage of renters and DOM days must be considered to evaluate demand properly. These metrics are critical for understanding the local rental market dynamics and tenant availability.

Note: The decision tree relies heavily on specific figures for market rent, the percentage of renters, and DOM days which were not provided. For a thorough analysis, these data points are essential to make informed decisions regarding investment suitability in ZIP 85030 for Section 8 properties.

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.