Section 8 Fair Market Rent (FMR) for ZIP 52212 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A decision tree for considering ZIP 52212 for Section 8 investments begins with the Fair Market Rent (FMR) figure of $1130 for the fiscal year 2024. This amount must be sufficient to cover the debt service on a property valued at $188,017.

Step 1: Does $1130 clear debt service on a $188,017 property?

• Yes: If the $1130 FMR is enough to cover the monthly mortgage payment and other expenses, then proceed to the next step. However, without specific details on the interest rate and loan terms, we cannot definitively state whether this is the case. It depends on the exact financials of the property in question.
• No: If the FMR does not cover the debt service, buying in ZIP 52212 would not be advisable for Section 8 tenants.

Step 2: Is the market rent above, at, or below FMR?

• Market Rent Above FMR: If the local market rent exceeds $1130, landlords could potentially attract non-Section 8 tenants who might pay higher rates. This diversifies income sources but does not directly impact the suitability for Section 8 investments.
• Market Rent At FMR: If the market rent is exactly $1130, landlords can expect to cover their costs with Section 8 tenants. This scenario is neutral towards investment decisions.
• Market Rent Below FMR: If the market rent is less than $1130, landlords should focus on the stability and predictability of Section 8 payments. This makes ZIP 52212 a more attractive option for Section 8 investments.

Step 3: Are 0.0% renters and N/A-day Days on Market (DOM) indicative of sufficient demand?

• It Depends: The data indicates that there are no active renters in the zip code, which suggests low demand. Additionally, the absence of a Days on Market figure implies either an anomaly in reporting or a lack of recent sales activity. Landlords should consider the broader context of the housing market in the area before making a decision. They may also want to look into the reasons behind the low rental activity and the potential for future growth.

In summary, the viability of purchasing property in ZIP 52212 for Section 8 tenants hinges on the ability of the $1130 FMR to cover debt service, the comparison between market rent and FMR, and the assessment of demand based on the available data. Given the low percentage of renters and missing DOM information, further investigation is necessary 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.