Section 8 Fair Market Rent (FMR) for ZIP 54451 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Investors looking at ZIP 54451 often have several concerns regarding the feasibility of renting properties under the Section 8 program. Let's address these concerns head-on using the available data.

• Will FMR $910 (zip FY 2024) cover the mortgage on a $237,020 home?: The Fair Market Rent (FMR) for ZIP 54451 in fiscal year 2024 is set at $910. This amount needs to be compared against the expected mortgage costs for a property valued at $237,020. Assuming a typical mortgage rate of around 4%, the annual mortgage cost for a $237,020 home would be approximately $11,000, or $917 per month. At first glance, the FMR does not cover the mortgage payment. However, it's important to note that FMRs are typically adjusted annually, and the actual mortgage costs can vary based on down payments, interest rates, and other factors. Additionally, property taxes and insurance should also be considered in the total cost equation.
• Is there enough renter demand at 24.4%?: The rental vacancy rate for ZIP 54451 stands at 24.4%. This percentage might seem high to some investors, indicating a potential oversupply of rental units. However, a higher vacancy rate could also mean that there are opportunities to attract tenants by offering competitive pricing or amenities. It's crucial to understand the local market dynamics, including job growth, population trends, and the overall economic health of the area. A detailed analysis of these factors would provide a clearer picture of whether the demand is sufficient despite the high vacancy rate.
• Will vouchers keep pace with $850 market rents?: The current market rent in ZIP 54451 is $850. While the FMR is slightly higher at $910, it's essential to consider how voucher amounts adjust over time. Historically, voucher amounts have been tied to inflation and housing cost indices, but there's no guarantee they will always match market rents. Investors need to monitor the local housing authority's policies and federal guidelines to predict future adjustments accurately. In the short term, the $910 FMR covers the $850 market rent, providing a buffer. Long-term sustainability requires ongoing vigilance on policy changes and local economic conditions.

The data provides insights into the immediate financial viability of investing in ZIP 54451 under the Section 8 program. However, it's critical to acknowledge that while the numbers give a snapshot, they do not account for all variables that influence investment outcomes. Detailed local market research and monitoring of policy changes are recommended to make informed 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.