Section 8 Fair Market Rent (FMR) for ZIP 57537 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 57537 presents several challenges for potential Section 8 landlords and small-portfolio investors. First, tenant turnover can be a significant issue when comparing the market rent to the Fair Market Rent (FMR) of $1,020 set for the fiscal year 2026 in the metro area. If the market rent is higher, tenants may struggle to find sufficient income to cover the gap, leading to increased turnover.

Vacancy exposure is another concern. With no data available on the average days on market (DOM), it's difficult to predict how long properties might remain vacant between tenants. This uncertainty can lead to financial strain, as vacancies mean lost rental income.

Deferred maintenance is also a risk factor. The lack of data on typical home values and median incomes suggests that there may be homes in the area that require substantial repairs or upgrades, which could be costly for landlords who take on these properties. Maintenance costs can quickly eat into profit margins, especially if the income from the property is limited to the FMR.

However, these risks must be weighed against the high concentration of renters in the area. While the exact percentage of renter share is not provided, high renter density typically correlates with a greater demand for housing vouchers. This means that even though the FMR is fixed at $1,020, the likelihood of finding tenants who qualify for Section 8 assistance is relatively strong, potentially offsetting some of the financial risks associated with lower rents.

Verdict: Moderate risk for a first-time Section 8 landlord.

Data Sources: FMR data from HUD (2027).

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.