Section 8 Fair Market Rent (FMR) for ZIP 91025 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should buy in ZIP code 91025 for Section 8 purposes, follow this decision tree based on the provided data.

1) Does the Fair Market Rent (FMR) of $2540 cover the debt service on a property?

If the N/A property's debt service is less than $2540, then the answer is yes. The FMR can support the mortgage payments. However, since the exact debt service figure is not provided, this question cannot be definitively answered without knowing the specifics of the property in question. Landlords must calculate their own debt service costs and compare them to the FMR.

2) Is the market rent above, at, or below the FMR of $2540?

The data indicates that the market rent is N/A. Without this information, it's impossible to make a direct comparison. If the market rent is above $2540, landlords might consider other investment opportunities where they can maximize their returns. If it's at or below $2540, then Section 8 properties can be competitive or even more attractive.

3) Are the rental demand indicators sufficient?

Rental demand in ZIP 91025 is represented by N/A% of renters and N/A-day days on the market (DOM). These figures suggest the percentage of residents who are renters and how quickly rental units are typically filled. If the percentage of renters is high and the DOM is low, there is strong demand for rentals, making Section 8 properties viable. Conversely, if the percentage of renters is low or the DOM is high, demand may not be robust enough to support a Section 8 investment.

Decision Outcome:

• If the FMR exceeds the debt service and market rent is below or equal to FMR, with strong rental demand, then the answer is yes. Section 8 properties in ZIP 91025 are likely a good investment.
• If the FMR does not exceed the debt service or market rent is significantly higher than FMR, then the answer is no. Section 8 properties would not be financially viable.
• If the FMR covers debt service but market conditions are unclear due to missing data, then the answer is it depends. Further investigation into local market dynamics and property-specific details is necessary before making an investment decision.

Note: Due to missing specific data points such as market rent and precise demand indicators, some branches of the decision tree cannot provide a definitive yes or no. Accurate analysis requires complete and current financial and market data.

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.