Section 8 Fair Market Rent (FMR) for ZIP 95001 - 2027

FY 2027 Fair Market Rent Rates

To decide whether to invest in ZIP 95001 for Section 8 properties, follow these steps:

• Does the Fair Market Rent (FMR) of $4050 cover debt service?
  • Yes: If your property's debt service is less than $4050 per month, then the FMR will cover your costs. Proceed to the next question.
  • No: If the debt service exceeds $4050, purchasing a Section 8 property in ZIP 95001 is not financially viable.
• Is the market rent above, at, or below the FMR?
  • Above: If market rents exceed $4050, you might consider investing outside of Section 8, as you can likely get higher returns from private tenants. However, if you still want to focus on Section 8, ensure that the FMR covers your debt service.
  • At: If market rents equal the FMR, you can expect steady cash flow from Section 8 tenants without significant profit margins over typical market rates.
  • Below: If market rents are below $4050, Section 8 could provide a stable income source that outperforms the local rental market.
• Are there sufficient renters and a reasonable days on market (DOM)?
  • N/A% renters indicate an unknown percentage of renters in the area, making it difficult to assess demand accurately. Without specific data on the percentage of renters and DOM, it is challenging to make a definitive recommendation. However, if the percentage of renters is high and DOM is low, indicating strong demand, then ZIP 95001 could be a good investment for Section 8 properties.
  • It depends: Given the lack of precise data, the viability of investing in Section 8 properties in ZIP 95001 hinges on additional research into the local rental market dynamics and tenant demand. Look for trends in renter population growth and vacancy rates to better understand the potential for occupancy.

In summary, the decision to purchase a Section 8 property in ZIP 95001 should be based on whether the FMR of $4050 meets or exceeds your debt service, how market rents compare to the FMR, and the overall demand for rentals in the area. Due to the incomplete data, further investigation is necessary to make a fully informed decision.

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.