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 | Mississippi MS | 143 | 146 | 8.68% | 9.44% | 745 |
| #2 | West Virginia WV | 143 | 145 | 8.66% | 9.19% | 1,340 |
| #3 | Oklahoma OK | 142 | 145 | 8.63% | 9.35% | 1,692 |
| #4 | Louisiana LA | 137 | 144 | 8.57% | 9.12% | 757 |
| #5 | Florida FL | 124 | 123 | 7.37% | 8.14% | 4,260 |
| #6 | Texas TX | 123 | 124 | 7.40% | 8.88% | 4,613 |
| #7 | Alabama AL | 119 | 128 | 7.60% | 8.01% | 1,228 |
| #8 | Arkansas AR | 117 | 122 | 7.27% | 7.86% | 558 |
| #9 | Kentucky KY | 115 | 122 | 7.29% | 8.05% | 1,762 |
| #10 | Indiana IN | 115 | 121 | 7.23% | 7.95% | 2,927 |
| #11 | Kansas KS | 114 | 118 | 7.04% | 8.48% | 1,646 |
| #12 | South Carolina SC | 114 | 118 | 7.02% | 7.53% | 1,216 |
| #13 | Georgia GA | 112 | 119 | 7.08% | 7.93% | 2,221 |
| #14 | Illinois IL | 111 | 116 | 6.95% | 9.02% | 2,761 |
| #15 | Nevada NV | 110 | 108 | 6.41% | 6.89% | 528 |
| #16 | Maryland MD | 110 | 113 | 6.75% | 7.75% | 1,285 |
| #17 | Arizona AZ | 110 | 108 | 6.45% | 6.98% | 1,163 |
| #18 | Ohio OH | 108 | 115 | 6.84% | 8.13% | 4,276 |
| #19 | Pennsylvania PA | 108 | 116 | 6.91% | 8.34% | 4,534 |
| #20 | Iowa IA | 105 | 107 | 6.38% | 7.74% | 2,271 |
| #21 | Virginia VA | 104 | 109 | 6.48% | 7.18% | 2,672 |
| #22 | Missouri MO | 104 | 111 | 6.63% | 7.48% | 2,227 |
| #23 | Delaware DE | 103 | 106 | 6.31% | 6.82% | 248 |
| #24 | North Carolina NC | 102 | 107 | 6.41% | 7.11% | 2,861 |
| #25 | Michigan MI | 101 | 108 | 6.43% | 7.72% | 2,997 |
| #26 | Alaska AK | 99 | 98 | 5.86% | 6.94% | 140 |
| #27 | New Mexico NM | 99 | 102 | 6.06% | 6.72% | 449 |
| #28 | Minnesota MN | 97 | 98 | 5.83% | 6.83% | 2,194 |
| #29 | Nebraska NE | 96 | 100 | 5.96% | 7.37% | 1,121 |
| #30 | Tennessee TN | 94 | 101 | 6.05% | 6.64% | 1,434 |
| #31 | North Dakota ND | 93 | 102 | 6.09% | 7.10% | 113 |
| #32 | New York NY | 88 | 93 | 5.54% | 7.42% | 6,034 |
| #33 | Colorado CO | 87 | 88 | 5.28% | 5.71% | 1,641 |
| #34 | Maine ME | 85 | 89 | 5.32% | 6.42% | 776 |
| #35 | Oregon OR | 83 | 83 | 4.97% | 5.76% | 1,239 |
| #36 | Utah UT | 82 | 80 | 4.76% | 5.27% | 518 |
| #37 | California CA | 82 | 85 | 5.05% | 5.75% | 6,626 |
| #38 | South Dakota SD | 79 | 84 | 4.98% | 6.09% | 290 |
| #39 | Washington WA | 77 | 78 | 4.63% | 5.42% | 1,865 |
| #40 | Idaho ID | 77 | 75 | 4.46% | 4.97% | 619 |
| #41 | Wyoming WY | 77 | 76 | 4.52% | 5.09% | 226 |
| #42 | District of Columbia DC | 76 | 73 | 4.39% | 4.97% | 99 |
| #43 | Vermont VT | 74 | 75 | 4.44% | 6.10% | 148 |
| #44 | Massachusetts MA | 74 | 76 | 4.52% | 5.66% | 2,256 |
| #45 | New Hampshire NH | 74 | 75 | 4.49% | 6.25% | 1,039 |
| #46 | Wisconsin WI | 74 | 77 | 4.57% | 6.07% | 1,517 |
| #47 | Montana MT | 73 | 86 | 5.12% | 5.84% | 659 |
| #48 | Hawaii HI | 72 | 76 | 4.53% | 4.79% | 331 |
| #49 | New Jersey NJ | 68 | 71 | 4.24% | 6.29% | 2,184 |
| #50 | Rhode Island RI | 61 | 61 | 3.66% | 4.94% | 315 |
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.