Best States for Section 8 Investment
States ranked by median investment score for Section 8 housing. Investment scores are based on Fair Market Rent (FMR) data, property values, tax rates, and net yield calculations for FY 2026.
Scores are normalized where 100 = median yield. Higher scores indicate better investment potential for Section 8 properties based on rent-to-price ratios and net yields after taxes.
| Rank | State | Median Score | Avg Score | Avg Net Yield | Avg Rent/Price | ZIP Codes |
|---|---|---|---|---|---|---|
| #1 | Louisiana LA | 149 | 151 | 8.77% | 9.22% | 1,188 |
| #2 | West Virginia WV | 141 | 143 | 8.26% | 8.80% | 1,536 |
| #3 | Mississippi MS | 140 | 144 | 8.31% | 9.05% | 1,041 |
| #4 | Oklahoma OK | 139 | 142 | 8.20% | 8.86% | 1,776 |
| #5 | Arkansas AR | 139 | 141 | 8.16% | 8.73% | 1,457 |
| #6 | North Dakota ND | 128 | 139 | 8.07% | 8.90% | 914 |
| #7 | Alabama AL | 123 | 128 | 7.41% | 7.78% | 1,653 |
| #8 | Illinois IL | 120 | 125 | 7.25% | 9.13% | 3,950 |
| #9 | Texas TX | 118 | 125 | 7.23% | 8.59% | 4,961 |
| #10 | Kentucky KY | 118 | 126 | 7.31% | 8.06% | 1,861 |
| #11 | South Carolina SC | 116 | 120 | 6.98% | 7.52% | 1,121 |
| #12 | Kansas KS | 116 | 120 | 6.98% | 8.42% | 1,839 |
| #13 | Florida FL | 115 | 116 | 6.69% | 7.46% | 2,784 |
| #14 | Georgia GA | 111 | 120 | 6.95% | 7.82% | 1,968 |
| #15 | Indiana IN | 108 | 113 | 6.54% | 7.23% | 2,141 |
| #16 | Delaware DE | 106 | 109 | 6.29% | 6.80% | 183 |
| #17 | Alaska AK | 106 | 138 | 8.00% | 8.84% | 258 |
| #18 | Pennsylvania PA | 106 | 111 | 6.43% | 7.78% | 4,913 |
| #19 | Missouri MO | 104 | 112 | 6.46% | 7.24% | 2,748 |
| #20 | Ohio OH | 104 | 108 | 6.23% | 7.47% | 3,348 |
| #21 | Iowa IA | 104 | 109 | 6.31% | 7.59% | 2,724 |
| #22 | South Dakota SD | 103 | 119 | 6.90% | 7.94% | 879 |
| #23 | Maryland MD | 102 | 105 | 6.07% | 7.03% | 1,269 |
| #24 | New Mexico NM | 102 | 107 | 6.20% | 6.79% | 681 |
| #25 | Michigan MI | 101 | 106 | 6.13% | 7.36% | 2,871 |
| #26 | Arizona AZ | 100 | 104 | 6.03% | 6.57% | 981 |
| #27 | Virginia VA | 100 | 105 | 6.06% | 6.73% | 2,337 |
| #28 | North Carolina NC | 99 | 105 | 6.09% | 6.80% | 2,262 |
| #29 | Nevada NV | 99 | 108 | 6.25% | 6.77% | 435 |
| #30 | Tennessee TN | 98 | 104 | 6.04% | 6.59% | 1,740 |
| #31 | Nebraska NE | 98 | 107 | 6.19% | 7.51% | 1,566 |
| #32 | Minnesota MN | 98 | 104 | 6.01% | 6.97% | 2,550 |
| #33 | Maine ME | 91 | 98 | 5.68% | 6.72% | 1,194 |
| #34 | Colorado CO | 87 | 92 | 5.30% | 5.72% | 1,360 |
| #35 | New York NY | 86 | 90 | 5.20% | 7.04% | 4,789 |
| #36 | Oregon OR | 83 | 85 | 4.95% | 5.69% | 1,122 |
| #37 | Montana MT | 81 | 96 | 5.56% | 6.28% | 916 |
| #38 | Utah UT | 80 | 87 | 5.02% | 5.52% | 786 |
| #39 | California CA | 80 | 82 | 4.73% | 5.42% | 4,683 |
| #40 | Idaho ID | 79 | 80 | 4.61% | 5.11% | 720 |
| #41 | District of Columbia DC | 78 | 77 | 4.47% | 5.06% | 66 |
| #42 | Wyoming WY | 77 | 81 | 4.70% | 5.24% | 366 |
| #43 | Washington WA | 77 | 78 | 4.53% | 5.29% | 1,614 |
| #44 | Vermont VT | 77 | 79 | 4.57% | 6.26% | 729 |
| #45 | Connecticut CT | 75 | 77 | 4.45% | 6.24% | 762 |
| #46 | Wisconsin WI | 74 | 78 | 4.52% | 5.92% | 2,280 |
| #47 | Massachusetts MA | 73 | 74 | 4.26% | 5.39% | 1,533 |
| #48 | Hawaii HI | 70 | 76 | 4.39% | 4.64% | 240 |
| #49 | New Jersey NJ | 70 | 72 | 4.18% | 6.22% | 1,677 |
| #50 | New Hampshire NH | 69 | 70 | 4.04% | 5.78% | 717 |
About Section 8 Investment Scores
Investment scores are calculated using Fair Market Rent (FMR) data from HUD, property values from Zillow (ZHVI), and effective property tax rates from the American Community Survey (ACS). Scores are normalized where 100 represents the median yield across all ZIP codes.
Higher scores indicate better investment potential for Section 8 properties, considering factors like rent-to-price ratios, net yields after taxes, and market stability. States with higher median scores typically offer better cash flow potential for Section 8 housing investments.