Section 8 Fair Market Rent (FMR) for ZIP 58451 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 58451 for Section 8 purposes, follow this decision tree:

• 1) Does FMR $870 (metro FY 2026) clear debt service on a property?
  • If yes: Proceed to the next question.
  • If no: Do not invest in this area for Section 8. The Fair Market Rent (FMR) does not cover your debt service costs, making it financially unviable.
• 2) Is market rent above, at, or below FMR?
  • If market rent is above FMR: It depends on how much higher the market rent is compared to the FMR. If the difference is significant, it may still be a good investment despite the FMR cap.
  • If market rent is at FMR: This is ideal for Section 8 properties as the rents align perfectly with what is allowable under the program. Continue to the next question.
  • If market rent is below FMR: This can still be a viable investment as long as the difference between market rent and FMR is minimal. Proceed to the next question.
• 3) Are 3.8% renters + N/A-day DOM enough demand?
  • If the Days on Market (DOM) is low: Yes, there is likely enough demand. With only 3.8% of the population renting, the competition among landlords could be high, but a low DOM suggests that properties are rented quickly once listed.
  • If the DOM is high: It depends on other factors such as the local economy and job market. High DOM might indicate slower rental activity, which could be risky for Section 8 investments.

Note: Specific figures for market rent and DOM are missing, which are crucial for a precise analysis. Ensure these metrics are available before making any investment decisions.

The decision to invest in ZIP 58451 for Section 8 properties hinges on the alignment between FMR and debt service costs, market rent levels, and the speed at which properties are rented out. Without concrete numbers for market rent and DOM, the final recommendation cannot be made definitively.

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.