Section 8 Fair Market Rent (FMR) for ZIP 50845 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The analysis of ZIP code 50845 reveals critical insights for potential landlords and small-portfolio investors considering investment in this area.

• Does the rent math work? The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,050. However, the current market rent based on Census ACS data is significantly lower at $750. This discrepancy suggests that landlords would need to either adjust their expectations to align with the actual market conditions or find ways to increase their property's value to justify higher rents.
• Is acquisition affordable? Unfortunately, the data provided does not include the median home value, days on market (DOM), or the percentage of homes that have been price-cut. Without these specific metrics, it's challenging to make a definitive statement on the affordability of acquiring properties in this ZIP code. Investors should seek additional local real estate market data to assess these factors.
• Is there tenant demand? The ZIP code has a population of 831 individuals, with 17.4% being renters. This indicates a relatively small pool of potential tenants. Given the limited number of residents and the low renter share, landlords might face challenges in finding enough tenants to fill their units consistently.

A careful review of the available data shows that while the ZIP code 50845 offers opportunities, they come with significant caveats. The rent math does not currently favor landlords aiming for the FMR, pointing to a need for realistic pricing strategies. The lack of specific acquisition cost data makes it difficult to advise on affordability, but the limited tenant demand suggests that competition for renters could be fierce. Therefore, any investor considering this ZIP code must be prepared to offer competitive rental rates and possibly deal with a smaller tenant pool. This analysis underscores the necessity for thorough local market research before making any investment decisions.

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.