Section 8 Fair Market Rent (FMR) for ZIP 93502 - 2027

FY 2027 Fair Market Rent Rates

The investment risk assessment for ZIP 93502 in Unknown, CA, reveals several critical issues that could impact the success of a Section 8 rental property. Tenant turnover is a significant concern, especially when comparing the market rent, which is currently unavailable, to the $1260 Fair Market Rent (FMR) for the fiscal year 2024. This discrepancy can lead to frequent changes in occupancy, affecting the stability of rental income.

Vacancy exposure is another risk factor. The average days on market (DOM) for properties in this area is also not available, making it difficult to predict how long a unit might remain vacant between tenants. A prolonged vacancy can significantly reduce overall returns and increase financial strain on the landlord.

Deferred maintenance is a notable issue given the lack of data on typical home values and median incomes in ZIP 93502. Without these figures, it's challenging to assess the likelihood of landlords having the necessary funds to keep properties in good condition, which is crucial for maintaining eligibility under the Section 8 program.

However, there is a silver lining to consider. Although the percentage of renters in the area is not specified, high renter density typically indicates higher demand for housing vouchers. This increased demand can help stabilize the number of qualified tenants seeking accommodation, potentially mitigating some of the risks associated with tenant turnover and vacancy.

Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 93502.

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.