Section 8 investing
Where Section 8 Pays More Than Market Rent
In 3,100 US ZIP codes, the HUD voucher rent basis is higher than the typical asking rent, sometimes by 50 percent or more. These are the markets where a voucher tenancy can out-earn a market tenancy on the same property. Ranked below from FY2026 HUD data and Zillow rents as of June 2026.
3,100
ZIPs above market
+73%
top premium
49
states with premium ZIPs
Top 25 premium ZIP codes nationally
| # | ZIP | Location | Voucher rent (2BR) | Voucher rent (3BR) | Typical market rent | Premium | Basis | |
|---|---|---|---|---|---|---|---|---|
| 1 | 75243 | Dallas, TXDallas County | $1,820 | $2,290 | $1,051 | +73% | ZIP SAFMR | Analyze deal |
| 2 | 89029 | Laughlin, NVClark County | $1,735 | $2,413 | $1,033 | +68% | County FMR | Analyze deal |
| 3 | 75287 | Dallas, TXCollin County | $2,150 | $2,710 | $1,289 | +67% | ZIP SAFMR | Analyze deal |
| 4 | 92311 | Barstow, CASan Bernardino County | $2,201 | $2,912 | $1,322 | +67% | County FMR | Analyze deal |
| 5 | 85031 | Phoenix, AZMaricopa County | $1,700 | $2,270 | $1,025 | +66% | ZIP SAFMR | Analyze deal |
| 6 | 31701 | Albany, GADougherty County | $1,129 | $1,534 | $682 | +66% | County FMR | Analyze deal |
| 7 | 54446 | Loyal, WIClark County | $973 | $1,238 | $600 | +62% | County FMR | Analyze deal |
| 8 | 11417 | New York, NYQueens County | $2,910 | $3,644 | $1,800 | +62% | County FMR | Analyze deal |
| 9 | 90015 | Los Angeles, CALos Angeles County | $4,350 | $5,520 | $2,705 | +61% | ZIP SAFMR | Analyze deal |
| 10 | 75254 | Dallas, TXDallas County | $2,160 | $2,720 | $1,344 | +61% | ZIP SAFMR | Analyze deal |
| 11 | 30324 | Atlanta, GAFulton County | $2,650 | $3,180 | $1,651 | +61% | ZIP SAFMR | Analyze deal |
| 12 | 22060 | Fort Belvoir, VAFairfax County | $3,370 | $4,250 | $2,107 | +60% | ZIP SAFMR | Analyze deal |
| 13 | 90020 | Los Angeles, CALos Angeles County | $3,070 | $3,890 | $1,921 | +60% | ZIP SAFMR | Analyze deal |
| 14 | 76132 | Fort Worth, TXTarrant County | $1,890 | $2,490 | $1,187 | +59% | ZIP SAFMR | Analyze deal |
| 15 | 75001 | Addison, TXDallas County | $2,500 | $3,150 | $1,571 | +59% | ZIP SAFMR | Analyze deal |
| 16 | 77013 | Houston, TXHarris County | $1,310 | $1,760 | $835 | +57% | ZIP SAFMR | Analyze deal |
| 17 | 76006 | Arlington, TXTarrant County | $1,900 | $2,510 | $1,215 | +56% | ZIP SAFMR | Analyze deal |
| 18 | 33449 | Wellington, FLPalm Beach County | $3,380 | $4,380 | $2,175 | +55% | ZIP SAFMR | Analyze deal |
| 19 | 80030 | Westminster, COAdams County | $2,089 | $2,734 | $1,350 | +55% | County FMR | Analyze deal |
| 20 | 85602 | Benson, AZCochise County | $1,530 | $2,070 | $990 | +55% | ZIP SAFMR | Analyze deal |
| 21 | 33716 | Saint Petersburg, FLPinellas County | $2,700 | $3,450 | $1,750 | +54% | ZIP SAFMR | Analyze deal |
| 22 | 92277 | Twentynine Palms, CASan Bernardino County | $2,201 | $2,912 | $1,428 | +54% | County FMR | Analyze deal |
| 23 | 75248 | Dallas, TXDallas County | $2,270 | $2,860 | $1,474 | +54% | ZIP SAFMR | Analyze deal |
| 24 | 15901 | Johnstown, PACambria County | $1,035 | $1,431 | $675 | +53% | County FMR | Analyze deal |
| 25 | 77531 | Clute, TXBrazoria County | $1,359 | $1,839 | $887 | +53% | County FMR | Analyze deal |
Premium compares the 2-bedroom voucher rent to the ZIP's typical asking rent across all home sizes. Rent data provided by Zillow Research.
Browse by state
California
473 premium ZIPs, up to +67%
Texas
399 premium ZIPs, up to +73%
Florida
250 premium ZIPs, up to +55%
Pennsylvania
167 premium ZIPs, up to +53%
New York
130 premium ZIPs, up to +62%
Arizona
124 premium ZIPs, up to +66%
Washington
112 premium ZIPs, up to +51%
Illinois
95 premium ZIPs, up to +39%
Indiana
88 premium ZIPs, up to +44%
Ohio
86 premium ZIPs, up to +46%
Michigan
84 premium ZIPs, up to +52%
Georgia
81 premium ZIPs, up to +66%
Colorado
79 premium ZIPs, up to +55%
Maryland
79 premium ZIPs, up to +38%
North Carolina
79 premium ZIPs, up to +42%
New Jersey
69 premium ZIPs, up to +25%
Virginia
60 premium ZIPs, up to +60%
Minnesota
57 premium ZIPs, up to +52%
Oregon
56 premium ZIPs, up to +26%
Tennessee
53 premium ZIPs, up to +37%
Wisconsin
47 premium ZIPs, up to +62%
Iowa
35 premium ZIPs, up to +50%
Nevada
35 premium ZIPs, up to +68%
Oklahoma
34 premium ZIPs, up to +42%
Missouri
31 premium ZIPs, up to +34%
Massachusetts
27 premium ZIPs, up to +36%
Kentucky
24 premium ZIPs, up to +35%
Utah
24 premium ZIPs, up to +33%
Kansas
21 premium ZIPs, up to +28%
South Carolina
20 premium ZIPs, up to +27%
Nebraska
19 premium ZIPs, up to +34%
Alabama
18 premium ZIPs, up to +30%
Connecticut
16 premium ZIPs, up to +46%
Louisiana
16 premium ZIPs, up to +48%
Arkansas
14 premium ZIPs, up to +12%
Montana
13 premium ZIPs, up to +32%
District of Columbia
11 premium ZIPs, up to +36%
New Mexico
11 premium ZIPs, up to +44%
Hawaii
9 premium ZIPs, up to +36%
Idaho
9 premium ZIPs, up to +10%
New Hampshire
9 premium ZIPs, up to +49%
Mississippi
6 premium ZIPs, up to +19%
Maine
5 premium ZIPs, up to +7%
North Dakota
5 premium ZIPs, up to +20%
Vermont
5 premium ZIPs, up to +10%
West Virginia
5 premium ZIPs, up to +20%
Alaska
4 premium ZIPs, up to +43%
Delaware
4 premium ZIPs, up to +9%
Rhode Island
2 premium ZIPs, up to +3%
How these numbers are calculated
- Voucher rent is the HUD FY2026 2-bedroom Small Area Fair Market Rent (SAFMR) where it applies, otherwise the county or metro Fair Market Rent. This is the basis housing authorities use to set payment standards, typically 90 to 110 percent of it, and it is a gross rent that includes a utility allowance.
- Typical market rent is the Zillow Observed Rent Index (ZORI) for the ZIP code as of June 2026, a smoothed measure of asking rents across all home types and sizes. Rent data provided by Zillow Research.
- Premium compares the 2-bedroom voucher rent against that blended market figure, which is the conservative comparison. Premiums for 3 and 4 bedroom homes are often larger.
- The premium is a screening signal, not a guarantee. Housing authorities run a rent reasonableness review against unassisted comparables before approving any contract rent, and the payment standard is a ceiling, not an entitlement. Always verify with the local housing authority.
Sources: HUD Fair Market Rents and Zillow Research (ZORI). FMRs effective October 1 each year; ZORI updates monthly.
Frequently asked questions
- Why would Section 8 pay more than market rent?
- HUD sets Fair Market Rents at the 40th percentile of rents across a whole metro area or county. In lower-cost ZIP codes inside that area, the area-wide standard can sit well above what typical homes actually rent for. Small Area FMRs narrow this gap in about two dozen metros, but even ZIP-level standards can exceed local asking rents.
- Can I actually charge the full amount shown here?
- Not automatically. The housing authority sets a payment standard between 90 and 110 percent of the FMR or SAFMR, and every lease passes a rent reasonableness review against comparable unassisted units. Treat the premium as a screening signal for where to look, then verify with the local housing authority.
- What data is this based on?
- Voucher rents are official HUD Fair Market Rents and Small Area Fair Market Rents for the current fiscal year. Market rents are the Zillow Observed Rent Index (ZORI) for each ZIP code, updated monthly. The premium compares the 2-bedroom voucher rent to the ZIP’s typical asking rent.
- Is the premium the same for every bedroom count?
- No. The percentage here is computed on 2-bedroom voucher rents against a market index that blends all home sizes, which makes it a conservative estimate. Premiums on 3 and 4 bedroom single-family homes are often larger, which is why the tables also show the 3-bedroom voucher rent.
- How often do these rankings update?
- Zillow rent data updates monthly and HUD publishes new Fair Market Rents each October. The rankings refresh automatically as both sources update.
Run the full numbers on a voucher deal
The Section 8 Investment Analyzer compares a voucher tenancy against a market tenancy side by side, with vacancy, lease-up lag, and inspection costs factored in. Free to use.