Question about Section 8 Rentals and FMR

[Kyle Clover]

Hi everyone,

I am attempting to find my first rental property which I may make Section 8. With Section 8 in my area, HUD has a FMR of $2,009 for a 3-bedroom house. On rentometer, the area I am looking in has an average 3 bedroom rental income of $1525 (not HUD/Section 8). My question is if I purchase a property in an area with normal market rental of $1525 could I still make the property section 8 and get a FMR of $2,009 from HUD?

Thanks for your time! I look forward to hearing from you guys!

[Adam Feick]

@Kyle Clover HUD and FMR typically includes utilities. So $2,009 would be the rent, gas, electric, etc. The cost of utilities in your area will impact the "net" rent you would receive from Section 8.