Section 8 Fair Market Rent (FMR) for ZIP 51447 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 51447 for Section 8 investments, follow these steps:

• Step 1: Calculate whether the Fair Market Rent (FMR) of $970 can cover the debt service on a property. If the FMR does not clear the debt service, then the answer is No. Debt service includes mortgage payments, insurance, taxes, and maintenance costs. Without knowing the exact cost of these items, it's impossible to give a definitive yes or no, but the FMR sets an upper limit on what you can expect from Section 8 tenants.
• Step 2: Compare the market rent of $1,167 (from Census ACS) against the FMR. Since the market rent exceeds the FMR, you have two options:
  • If you plan to exclusively serve Section 8 tenants, the answer is No. The market rent being higher than the FMR means that you would be leaving money on the table by only accepting Section 8 vouchers.
  • If you are willing to have a mix of Section 8 and market-rate tenants, proceed to the next step.
• Step 3: Evaluate the rental demand in the area. With 38.5% of residents being renters, there is a reasonable amount of rental demand. However, the gating factor is the number of days on the market (DOM), which is currently unknown.
  • If the DOM is low, indicating that properties are rented quickly, then the answer is Yes. There is sufficient demand to fill vacancies promptly.
  • If the DOM is high, suggesting slow turnover or difficulty in renting units, then the answer is No. High DOM implies a weaker rental market, making it harder to maintain occupancy rates.
  • If the DOM is moderate, the answer is It Depends. This situation requires further analysis of the local housing trends and competition to decide if the demand is strong enough to support a Section 8 investment.

In summary, the decision to invest in ZIP code 51447 for Section 8 properties hinges on your ability to cover debt service with the FMR, willingness to diversify your tenant base, and the strength of the rental market as indicated by the DOM. The FMR of $970 is below the market rent of $1,167, which suggests that relying solely on Section 8 would not maximize your income potential.

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.