Section 8 Fair Market Rent (FMR) for ZIP 91003 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP 91003 (Unknown, CA) for Section 8 investments, follow this decision tree:

Step 1: Does the Fair Market Rent (FMR) of $2540 cover your debt service?

• Yes: If the FMR can cover the debt service on your property, proceed to Step 2.
• No: If the FMR of $2540 does not cover the debt service, purchasing in this area is not advisable for Section 8 investments.

Step 2: Is the market rent above, at, or below the FMR?

• Above: If the market rent is higher than the FMR of $2540, it suggests strong rental demand that could benefit non-Section 8 tenants, but it also means that Section 8 tenants might struggle to find units.
• At: If the market rent matches the FMR, it indicates that Section 8 rents align well with the local rental market, making it a suitable investment.
• Below: If the market rent is below the FMR, it's advantageous for Section 8 landlords as they can potentially receive higher subsidies compared to the local average.

Step 3: Are the percentage of renters and the days on market (DOM) sufficient to meet demand?

• It Depends: The exact percentage of renters and DOM are missing, but generally, if the percentage of renters is high and DOM is low, it indicates strong demand. However, without specific figures, you must consider other factors such as vacancy rates and the number of Section 8 vouchers available in the area.

Note: Due to the lack of detailed data, including market rent and the percentage of renters along with DOM, some branches provide a general assessment rather than a definitive answer.

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.