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 | West Virginia WV | 145 | 148 | 8.28% | 8.82% | 756 |
| #2 | Mississippi MS | 142 | 149 | 8.35% | 9.11% | 429 |
| #3 | Oklahoma OK | 140 | 146 | 8.15% | 8.87% | 964 |
| #4 | Louisiana LA | 139 | 147 | 8.20% | 8.75% | 443 |
| #5 | Kentucky KY | 119 | 126 | 7.03% | 7.79% | 999 |
| #6 | Florida FL | 119 | 119 | 6.65% | 7.42% | 2,537 |
| #7 | Alabama AL | 119 | 129 | 7.22% | 7.63% | 726 |
| #8 | Indiana IN | 116 | 123 | 6.86% | 7.57% | 1,711 |
| #9 | South Carolina SC | 115 | 119 | 6.64% | 7.15% | 714 |
| #10 | Texas TX | 114 | 117 | 6.55% | 8.04% | 2,737 |
| #11 | Arkansas AR | 114 | 120 | 6.70% | 7.29% | 324 |
| #12 | Kansas KS | 113 | 120 | 6.72% | 8.16% | 945 |
| #13 | Ohio OH | 110 | 116 | 6.49% | 7.78% | 2,526 |
| #14 | Illinois IL | 110 | 117 | 6.53% | 8.61% | 1,622 |
| #15 | Georgia GA | 109 | 116 | 6.48% | 7.32% | 1,314 |
| #16 | Iowa IA | 108 | 110 | 6.16% | 7.52% | 1,315 |
| #17 | Maryland MD | 107 | 110 | 6.17% | 7.17% | 777 |
| #18 | Pennsylvania PA | 107 | 114 | 6.39% | 7.82% | 2,666 |
| #19 | Delaware DE | 107 | 109 | 6.12% | 6.64% | 149 |
| #20 | Missouri MO | 106 | 113 | 6.34% | 7.19% | 1,269 |
| #21 | Virginia VA | 105 | 109 | 6.12% | 6.83% | 1,567 |
| #22 | Michigan MI | 104 | 111 | 6.18% | 7.47% | 1,755 |
| #23 | North Carolina NC | 103 | 108 | 6.01% | 6.72% | 1,667 |
| #24 | Alaska AK | 102 | 102 | 5.71% | 6.79% | 83 |
| #25 | Arizona AZ | 101 | 101 | 5.66% | 6.19% | 690 |
| #26 | New Mexico NM | 101 | 103 | 5.76% | 6.43% | 260 |
| #27 | Nebraska NE | 101 | 104 | 5.83% | 7.25% | 628 |
| #28 | Minnesota MN | 100 | 101 | 5.64% | 6.64% | 1,289 |
| #29 | Nevada NV | 100 | 100 | 5.61% | 6.09% | 313 |
| #30 | North Dakota ND | 98 | 108 | 6.03% | 7.04% | 65 |
| #31 | Tennessee TN | 96 | 102 | 5.71% | 6.30% | 827 |
| #32 | New York NY | 92 | 97 | 5.45% | 7.34% | 3,536 |
| #33 | Maine ME | 88 | 93 | 5.21% | 6.31% | 445 |
| #34 | Colorado CO | 88 | 89 | 4.97% | 5.41% | 957 |
| #35 | Oregon OR | 87 | 87 | 4.84% | 5.63% | 723 |
| #36 | South Dakota SD | 86 | 88 | 4.94% | 6.05% | 169 |
| #37 | Connecticut CT | 84 | 86 | 4.83% | 6.62% | 736 |
| #38 | California CA | 82 | 83 | 4.67% | 5.36% | 3,902 |
| #39 | Wyoming WY | 82 | 81 | 4.53% | 5.10% | 130 |
| #40 | Idaho ID | 81 | 77 | 4.30% | 4.81% | 364 |
| #41 | Washington WA | 81 | 80 | 4.46% | 5.26% | 1,088 |
| #42 | Utah UT | 80 | 77 | 4.32% | 4.83% | 309 |
| #43 | Vermont VT | 79 | 78 | 4.35% | 6.01% | 85 |
| #44 | Wisconsin WI | 77 | 80 | 4.48% | 6.00% | 867 |
| #45 | Montana MT | 77 | 89 | 4.99% | 5.71% | 372 |
| #46 | District of Columbia DC | 76 | 76 | 4.26% | 4.85% | 57 |
| #47 | Massachusetts MA | 76 | 77 | 4.28% | 5.42% | 1,339 |
| #48 | New Hampshire NH | 74 | 76 | 4.23% | 5.98% | 611 |
| #49 | Hawaii HI | 72 | 78 | 4.35% | 4.60% | 195 |
| #50 | New Jersey NJ | 68 | 72 | 4.03% | 6.08% | 1,313 |
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.