Section 8 Fair Market Rent (FMR) for ZIP 58712 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$830
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,700
5 Bedrooms	$1,972
6 Bedrooms	$2,209
7 Bedrooms	$2,386
8 Bedrooms	$2,505

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if a landlord should invest in ZIP code 58712 for Section 8 properties, follow this decision tree using the provided data points:

1. Does the Fair Market Rent (FMR) of $1,000 for the metro area in fiscal year 2026 cover the debt service on a property in ZIP 58712?

• Yes: Proceed to the next question.
• No: Investing in Section 8 properties in ZIP 58712 is not advisable. The FMR does not sufficiently cover the costs associated with owning a rental property, leading to financial losses.

2. How does the market rent in ZIP 58712 compare to the FMR of $1,000?

• Above FMR: If the market rent is higher than the FMR, it indicates that non-Section 8 tenants might be willing to pay more. This could mean that landlords would be better off targeting the broader rental market rather than relying solely on Section 8 subsidies. However, consider the potential for a mixed portfolio where some units are leased to Section 8 tenants and others to market-rate tenants.
• At FMR: The market rent aligns with the FMR, making ZIP 58712 a viable option for Section 8 investments. Landlords can expect to break even or slightly profit based on the subsidy amount and their operating expenses.
• Below FMR: If the market rent is lower than the FMR, Section 8 subsidies can help fill the gap between what the market will bear and the cost of ownership. This scenario makes ZIP 58712 an attractive location for Section 8 properties, as the subsidies can support a stable income stream.

3. Is there sufficient demand for rentals in ZIP 58712, considering 10.0% of residents are renters and the average Days on Market (DOM) is N/A days?

• It depends: With 10.0% of residents being renters, the demand for rental properties is relatively low. However, the key factor is the DOM figure. If the DOM is short, indicating quick leasing, then despite the lower percentage of renters, there is still a strong demand for available units. Conversely, if the DOM is long, it suggests a glut in the rental market, which could make it difficult to find tenants for Section 8 units.

In conclusion, the viability of investing in ZIP 58712 for Section 8 properties hinges on the alignment between FMR and debt service, the comparison of market rents to FMR, and the balance of supply and demand for rental properties. Carefully evaluate these factors before making a decision.

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.