Section 8 Fair Market Rent (FMR) for ZIP 53826 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

If a landlord is considering investing in ZIP code 53826 for Section 8 properties, they should follow this decision tree:

1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property valued at $221,983?

• Yes: The FMR of $970 is sufficient to cover the debt service on a property worth $221,983. This means that the rental income from a Section 8 tenant would be enough to meet the mortgage payments and other financial obligations associated with the property.
• No: The FMR of $970 does not cover the debt service on a property valued at $221,983. In this case, landlords would need to consider whether they can afford the shortfall or if the investment is worthwhile despite the lower income from Section 8 tenants.

2) How does the market rent of $690 compare to the FMR?

• Above FMR: If the market rent were above $970, then the area is overvalued for Section 8. However, since the market rent is $690, which is below the FMR, this indicates that there is potential for landlords to benefit from the higher guaranteed rental income from Section 8 tenants compared to the local market rates.
• At FMR: Not applicable in this scenario as the market rent is below the FMR.
• Below FMR: Given that the market rent is $690, which is below the FMR, landlords could leverage the higher Section 8 rental rate to secure better cash flow and profitability than what the local market offers.

3) Is the combination of 21.0% renters and an unspecified number of days on the market (DOM) indicative of sufficient demand?

• Yes: With 21.0% of the population being renters, there is a reasonable level of demand for rental properties. While the DOM is listed as N/A, indicating incomplete data, the percentage of renters suggests that there is an audience interested in renting properties, including those who might qualify for Section 8 housing assistance.
• No: If the DOM were significantly high, it would suggest that rental units take a long time to fill, potentially indicating low demand. However, since the DOM is not specified, we cannot definitively conclude on this point based solely on the provided data.
• It Depends: The demand for rental properties in ZIP 53826 hinges on the unspecified DOM figure. A high DOM might indicate challenges in filling vacancies, whereas a low DOM would suggest strong demand. The 21.0% of the population being renters provides a baseline level of interest, but the actual speed at which rentals are filled will determine the viability of the investment.

The analysis concludes that the FMR of $970 provides a clear advantage over the local market rent of $690, ensuring a higher and more stable income stream for landlords. The 21.0% renter population indicates a base level of demand, though the exact days on the market is crucial for understanding how quickly properties can be leased. Landlords must assess their tolerance for potential vacancy periods and the overall financial health of the investment.

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.