Section 8 Fair Market Rent (FMR) for ZIP 49634 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To decide whether to invest in ZIP code 49634 for Section 8 properties, follow this decision tree:

• 1) Does the Fair Market Rent (FMR) of $1,040 cover the debt service on a property?
  • Yes: Proceed to the next question.
  • No: Do not invest in this ZIP code as the rental income will not be sufficient to meet financial obligations.
• 2) How does the market rent compare to the FMR?
  • Above FMR: The area is overpriced relative to Section 8 rates; consider other ZIP codes.
  • At FMR: Market rent matches the FMR exactly; it's a break-even scenario. Investment is viable if you can manage expenses effectively.
  • Below FMR: Market rent is lower than the FMR; Section 8 tenants might provide better revenue stability than market-rate tenants.
• 3) Is there sufficient demand with 20.3% of residents being renters and an average of N/A days on the market (DOM)?
  • N/A DOM: This metric is missing, making it impossible to determine how quickly properties are rented out. However, with 20.3% of residents renting, there is a notable portion of the population that could potentially benefit from Section 8 housing. It depends on other factors such as competition and vacancy rates.

If the FMR of $1,040 covers the debt service and the market rent is either at or below the FMR, then the ZIP code shows potential for Section 8 investment. With 20.3% of the population renting, there is a base level of demand, but the exact days on the market are needed to make a final determination on the viability of this investment strategy.

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.