Section 8 Fair Market Rent (FMR) for ZIP 42304 - 2027
Location: Owensboro, KY | Metro: Owensboro, KY MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
The decision to invest in ZIP 42304 for Section 8 properties hinges on three key factors: Fair Market Rent (FMR), market rent comparison, and rental demand. Let's break down the analysis:
- Does FMR $1100 (ZIP FY 2024) clear debt service on a property?
- Yes: If the $1100 FMR covers the total debt service, including mortgage payments, taxes, insurance, and maintenance costs, then the property is financially viable under Section 8.
- No: If the FMR does not cover the debt service, investing in ZIP 42304 for Section 8 would not be advisable.
- Is market rent above, at, or below FMR?
- Above FMR: If the average market rent exceeds $1100, landlords might find it challenging to attract tenants willing to pay only the FMR. This scenario reduces the attractiveness of Section 8 investments.
- At FMR: When the market rent equals the FMR, Section 8 tenants can afford market rates, making the investment more stable and attractive.
- Below FMR: If the market rent is lower than $1100, landlords could potentially charge higher rents to Section 8 tenants without deterring them, enhancing profitability.
- Are the percentage of renters and days on market (DOM) sufficient to meet demand?
- Sufficient Demand: If the percentage of renters is high and the DOM is low, indicating quick turnover, ZIP 42304 could support Section 8 investments well. High demand ensures steady occupancy.
- Insufficient Demand: Low percentages of renters and high DOM suggest weak demand. In such cases, landlords may struggle to maintain occupancy, making Section 8 investments less appealing.
To summarize, if FMR $1100 clears debt service, market rent aligns favorably with FMR, and there is sufficient rental demand, the answer is yes. Otherwise, it depends on how these factors balance out, or no, if the conditions do not support viable Section 8 investments.
Data Sources: FMR data from HUD (2027).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.