Section 8 Fair Market Rent (FMR) for ZIP 58365 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to invest in ZIP code 58365 for Section 8 properties, follow this decision tree based on the available data:

1) Does the Fair Market Rent (FMR) of $870 cover the debt service on a property?

No data is available for the property cost or debt service in ZIP 58365. Therefore, it's impossible to determine if the FMR can clear the debt service. Landlords must calculate their own debt service costs and compare them against the FMR.

2) Is the market rent of $442 above, at, or below the FMR?

The market rent in ZIP 58365 is significantly below the FMR of $870. This indicates that landlords could potentially benefit from the higher subsidy payments offered under the Section 8 program compared to the local rental market rates.

3) Are 23.7% of residents renters, and does the number of days on the market (DOM) indicate sufficient demand?

The rental population in ZIP 58365 stands at 23.7%, which is a moderate percentage. However, without knowing the DOM, it's challenging to assess the demand accurately. If the DOM is low, indicating quick leasing, then the demand is likely sufficient. Otherwise, it depends on how quickly units typically lease in this area.

Decision Path:

• If the FMR of $870 covers your debt service and you can acquire properties at a price point where this is feasible, proceed to the next step.
• The market rent being below the FMR suggests potential profitability with Section 8 tenants, but this alone doesn't guarantee investment success.
• A 23.7% rental rate combined with a low DOM would suggest there is enough demand to consider investing. A high DOM might indicate a saturated market or difficulty in finding tenants.

Note: The lack of specific data on property costs and DOM means that further research is required to make a fully informed decision. Evaluate these factors alongside the provided data points before committing to an investment in ZIP 58365.

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.