Section 8 Fair Market Rent (FMR) for ZIP 50575 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering ZIP code 50575 for Section 8 investments must follow a structured decision-making process based on financial feasibility, rental market conditions, and demand. Here's how to evaluate:

1) Does the Fair Market Rent (FMR) of $920 cover the debt service on a property valued at $92,530?

• Yes: The FMR of $920 is sufficient to cover the average debt service, assuming typical financing terms. For a property costing $92,530, a mortgage payment might range around $400-$500 depending on interest rates and loan terms. Therefore, the FMR comfortably exceeds the monthly debt service, making it financially viable.
• No: If the debt service significantly exceeds the FMR, then the investment is not feasible under Section 8 guidelines. However, given the figures, this scenario is unlikely.

2) How does the market rent of $645 compare to the FMR?

• Above: Not applicable here since the market rent is below the FMR. This suggests that landlords can potentially charge closer to the FMR without pricing themselves out of the market, which is beneficial for Section 8 participation.
• At: Not applicable.
• Below: The market rent of $645 is below the FMR of $920. This indicates that landlords participating in Section 8 could potentially receive higher rents compared to the local market, thus providing an advantage over non-Section 8 rentals.

3) Is there enough demand with 10.9% of residents renting and N/A-day days on the market (DOM)?

• Yes: While the exact number of days on the market is not provided, the 10.9% of residents who are renters suggest a steady demand for rental properties. Landlords should consider that the lack of DOM data might indicate low turnover or limited data availability, but the percentage of renters is promising.
• No: Not applicable if the percentage of renters is high. However, if the DOM were unusually high, it would signal a slow-moving market, which could be concerning.
• It Depends: Given the incomplete DOM data, the decision hinges on other factors such as vacancy rates and competition. A deeper analysis of these elements would clarify whether the demand is robust enough for Section 8 investments.

In conclusion, for ZIP code 50575, the FMR covers debt service, the market rent is below FMR, and the percentage of renters indicates potential demand. These factors generally support a positive outlook for Section 8 investments, though landlords should seek additional market-specific data to confirm.

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.