Section 8 Fair Market Rent (FMR) for ZIP 95152 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should invest in ZIP 95152 for Section 8 properties, follow this decision tree based on the available data:

1) Does the Fair Market Rent (FMR) of $3130 cover the debt service on a property?

• Yes: If the FMR can comfortably exceed the total debt service costs, including mortgage payments, taxes, insurance, and maintenance, then the property is financially viable for Section 8.
• No: If the FMR does not cover the debt service costs, investing in this ZIP code would be unprofitable and is not recommended.

2) How does the market rent compare to the FMR?

• Above FMR: If the market rent is higher than the FMR of $3130, the property could potentially be rented out at a higher rate outside of the Section 8 program, making it less attractive for Section 8 investment.
• At or Below FMR: If the market rent is equal to or lower than the FMR, then the property is more likely to be competitive within the Section 8 program, aligning well with tenant subsidies.

3) Is there sufficient rental demand in ZIP 95152?

• Yes: If the percentage of renters in the area is high and the days on market (DOM) for rental properties is low, there is strong demand for rentals, which benefits Section 8 properties. Landlords can expect a steady stream of potential tenants.
• No: If the percentage of renters is low and the DOM is high, it indicates weak demand for rentals. This would make it difficult to find tenants willing to participate in the Section 8 program.
• It Depends: In cases where the rental demand is moderate, landlords must carefully assess the local housing market conditions and competition to determine if they can attract enough tenants through the Section 8 program.

Note: Specific percentages of renters and DOM figures were not provided for ZIP 95152. These metrics are crucial for assessing demand and should be researched further before making an investment 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.