Section 8 Fair Market Rent (FMR) for ZIP 96014 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 96014 for Section 8 investment, follow this decision tree based on the provided data.

1. Does FMR $1,150 (metro FY 2026) clear debt service on a property?

• No: If the Fair Market Rent (FMR) of $1,150 does not cover your debt service, then purchasing in ZIP 96014 is not advisable. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. Without sufficient rent to cover these expenses, you will incur losses.
• Yes: If $1,150 can indeed cover all your debt service costs, proceed to the next question.

2. Is market rent above, at, or below FMR?

• Above: If the market rent exceeds $1,150, it suggests that there is potential for higher returns outside of Section 8. However, if you're strictly focused on Section 8 properties, this doesn't directly impact your decision. It merely indicates that non-Section 8 tenants might be willing to pay more.
• At: If the market rent is exactly $1,150, you're likely to find a balance between covering your expenses and attracting tenants. This scenario makes ZIP 96014 a viable option for Section 8 investment.
• Below: If the market rent is below $1,150, you'll face challenges in finding non-Section 8 tenants willing to pay the FMR. In this case, ZIP 96014 remains a good choice for Section 8 investment, as long as the FMR covers your debt service.

3. Are 33.9% renters + N/A-day DOM enough demand?

• It Depends: With 33.9% of residents being renters, there's a decent level of demand. The Days on Market (DOM) figure is missing, which is crucial for understanding how quickly properties are rented out. If the DOM is low, indicating fast turnover, the demand is strong. Conversely, if DOM is high, it could mean slower leasing times and less demand. Therefore, you need to evaluate the DOM to make an informed decision.

In summary, if the FMR of $1,150 clears your debt service and the market rent is at or below FMR, ZIP 96014 is suitable for Section 8 investment. However, the strength of demand hinges on the DOM value, which must be assessed to ensure a steady flow of tenants.

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.