Section 8 Fair Market Rent (FMR) for ZIP 58746 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering purchasing a property in ZIP code 58746 for Section 8 investment should follow this decision tree:

1) Does the Fair Market Rent (FMR) of $940 (metro FY 2026) cover the debt service on a property priced at $246,634?

• Yes. The FMR of $940 is sufficient to clear the debt service on a property valued at $246,634. This means that the rental income from a Section 8 tenant would meet the financial obligations of owning the property, including mortgage payments and other expenses.
• No. If the FMR does not cover the debt service, then buying a property in ZIP 58746 for Section 8 purposes would not be financially viable. The landlord would need to find properties with lower acquisition costs to ensure the FMR can support the debt service.

2) How does the market rent of $768 (Census ACS) compare to the FMR?

• Above FMR. If the market rent were higher than the FMR, it would indicate that non-Section 8 tenants could potentially pay more than what is covered by the program, which might make the property more attractive to private renters.
• At FMR. The market rent of $768 is below the FMR of $940, suggesting that while you can rely on Section 8 to provide a stable income, you cannot charge market rates for non-Section 8 tenants.
• Below FMR. Since the market rent is already below the FMR, this confirms that the property will only attract Section 8 tenants based on the current market conditions.

3) Is there enough demand for rental properties given that 17.7% of residents are renters and the days on market (DOM) is not available?

• It depends. With 17.7% of the population being renters, the demand for rental units is present but not overwhelming. However, without the DOM data, it's unclear how quickly rentals are turning over. If the turnover rate is high, it indicates strong demand despite the percentage of renters being relatively low. Conversely, if the turnover rate is slow, it suggests weak demand and potential difficulty in filling vacancies.

In conclusion, the viability of purchasing a property in ZIP 58746 for Section 8 investment hinges on whether the FMR can cover the debt service, the relationship between market rents and FMR, and the strength of rental demand. Given the data, the first criterion is met, and the second indicates reliance on Section 8 rates. The third criterion requires further investigation into the local rental market dynamics to determine if there is sufficient demand to warrant an investment.

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.