Section 8 Fair Market Rent (FMR) for ZIP 49061 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to invest in ZIP 49061 for Section 8 properties, follow these steps:

Step 1: Can the Fair Market Rent (FMR) cover the debt service?

• If the FMR of $990 (for ZIP 49061 in fiscal year 2024) can clear the debt service on a property valued at $247,230, then proceed to Step 2.
• If not, the answer is No. The FMR does not sufficiently cover the costs associated with owning a property of that value, making it an unprofitable investment for Section 8.

Step 2: How does the market rent compare to the FMR?

• The market rent is $1,049 (as per Census ACS data).
• If market rent is above the FMR, then proceed to Step 3.
• If market rent is equal to the FMR, the decision is It Depends. The property could be rented at market rates but would also qualify for Section 8 if needed. This scenario requires further analysis into local housing trends and tenant preferences.
• If market rent is below the FMR, the answer is No. There's no incentive to participate in the Section 8 program since the market rate is lower than what the government will pay.

Step 3: Is there sufficient demand for rental properties?

• In ZIP 49061, 12.3% of residents are renters.
• The data on days on the market (DOM) is currently N/A.
• If the percentage of renters is high enough and the DOM suggests quick turnover, then the answer is Yes. There is a strong demand for rental properties, which supports both market and Section 8 rentals.
• If the percentage of renters is low and the DOM is high, the answer is No. There isn't enough demand to justify investing in Section 8 properties.
• If the percentage of renters is moderate and the DOM is unknown, the answer is It Depends. More investigation into the local rental market dynamics is necessary to determine if there's enough demand to support a Section 8 investment.

Note: The lack of DOM data makes it challenging to fully assess the liquidity of the rental market. It is recommended to gather additional local market intelligence to make a well-informed decision.

Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).

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.