Section 8 Fair Market Rent (FMR) for ZIP 47986 - 2027

FY 2027 Fair Market Rent Rates

To classify ZIP code 47986 on the axes of yield and stability, we must analyze the available data points. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $970. However, the market rent and median home value data are currently unavailable, which limits our ability to fully assess the yield potential against these benchmarks.

Moving on to stability, the percentage of renters, average days on the market (DOM), and median income figures are also not provided. Without these specifics, it's challenging to gauge the financial stability of the tenants and the overall market health. Typically, a higher percentage of renters and lower DOM values indicate a stable rental market, while median income levels can suggest the ability of residents to sustain rental payments.

The absence of comparative market rent data means we cannot directly determine if the FMR of $970 represents a high-yield opportunity relative to what other properties might be renting for. Similarly, without knowing the median home value, it’s impossible to infer whether the area is experiencing significant appreciation that could drive up rental costs.

In terms of stability, the lack of data on renters' percentage and DOM makes it difficult to ascertain how secure the cash flow would be. High renter percentages and low DOM values usually signal a strong demand for rentals, which can lead to consistent occupancy rates. Median income is crucial for understanding the economic base supporting the rental market; higher incomes generally mean greater financial stability among tenants.

Given the limited data, ZIP 47986 cannot be definitively classified into a high-yield/low-stability flip-style market or a steady-cashflow zone. The known FMR of $970 suggests a baseline for rental pricing but does not provide enough context to make a clear determination on yield versus stability.

To make a more informed decision, additional data such as market rent, median home value, percentage of renters, DOM, and median income would need to be obtained. These metrics will help clarify whether the area offers high returns or stable cash flows, or falls somewhere in between.

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.