Section 8 Fair Market Rent (FMR) for ZIP 96812 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP 96812 (Unknown, HI) for Section 8, follow this decision tree:

Step 1: Does the Fair Market Rent (FMR) of $2390 cover your debt service on a property?

• Yes. If the FMR of $2390 is sufficient to cover your debt service, proceed to Step 2.
• No. If the FMR of $2390 does not cover your debt service, do not purchase in this area for Section 8. The rental income will not be enough to sustain your financial obligations.

Step 2: Is the market rent above, at, or below the FMR of $2390?

• Above. If the market rent is higher than $2390, consider purchasing in this area only if you plan to cater to non-Section 8 tenants who can afford higher rents. This would not be optimal for a Section 8 portfolio.
• At. If the market rent equals the FMR of $2390, this is an ideal scenario for Section 8 properties as you can expect to receive the FMR without difficulty.
• Below. If the market rent is lower than $2390, purchasing for Section 8 could still be viable as long as you secure Section 8 tenants who will pay the FMR. However, this also means that there might be less demand for higher-priced rentals.

Step 3: Do the percentage of renters and days on market indicate sufficient demand?

• Yes. If the percentage of renters is high and the days on market (DOM) is low, there is likely enough demand for Section 8 properties. High percentages of renters and quick turnover suggest a robust rental market.
• No. If the percentage of renters is low and the DOM is high, there is insufficient demand for Section 8 properties. This indicates a weak rental market where it might be difficult to find tenants.
• It Depends. If the percentage of renters and DOM are moderate, evaluate further factors such as the local economy, job growth, and population trends. These elements can influence the demand for affordable housing.

Note: Due to missing specific data points, some steps cannot be quantitatively assessed. Ensure you gather comprehensive local market data before making a final 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.