Section 8 Fair Market Rent (FMR) for ZIP 96006 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering Section 8 properties in ZIP code 96006 might raise several concerns. Let's address these with the available data.

• Will FMR $1,230 (metro FY 2026) cover the mortgage on a $195,434 home?: The Fair Market Rent (FMR) for ZIP 96006 is set at $1,230 per month for fiscal year 2026. To determine if this will sufficiently cover the mortgage, we need to calculate the monthly mortgage payment based on the median home value of $195,434. Assuming a typical 30-year fixed-rate mortgage with an interest rate of 4%, the monthly principal and interest payment would be approximately $947. This leaves a margin of $283 above the mortgage payment, which can help cover property taxes, insurance, maintenance, and other expenses. However, it's important to note that the actual mortgage amount will depend on the down payment and the specific interest rate offered at the time of purchase.
• Is there enough renter demand at 23.1%?: With a renter-occupied housing rate of 23.1%, some might question whether there is sufficient demand for rental properties. This percentage indicates that nearly one-quarter of the homes in ZIP 96006 are rented out, suggesting a moderate level of rental activity. While this figure alone does not guarantee high demand, it provides a baseline for understanding the rental market's size. To further assess demand, one would need to consider factors such as population growth, job availability, and local economic conditions, which are not directly addressed by the provided data.
• Will vouchers keep pace with N/A market rents?: Unfortunately, the data provided does not include specifics on voucher amounts or how they compare to market rents in ZIP 96006. The ability of Section 8 vouchers to cover market rents is critical for ensuring that tenants can afford their homes and that landlords receive adequate compensation. Without this information, it's challenging to make a definitive statement. Typically, voucher programs aim to match the average market rent within a certain range, but local variations can affect this. It would be prudent for an investor to research the historical trend of voucher payments versus market rents in the area to gauge future stability.

In conclusion, while the FMR of $1,230 appears to provide a reasonable buffer over the expected mortgage payment for a home valued at $195,434, the moderate rental occupancy rate of 23.1% suggests a balanced but not overly saturated market. The lack of specific voucher data makes it difficult to predict how well they will keep up with market rents, underscoring the importance of additional local research.

Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).

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.