Section 8 Fair Market Rent (FMR) for ZIP 59433 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Skeptical investors looking into ZIP 59433 might have several concerns regarding the feasibility of investing in the area through the Section 8 program. Let's break down these concerns and address them with the available data.

• Will FMR $1,340 (metro FY 2026) cover the mortgage on a $259,726 home? The Fair Market Rent (FMR) of $1,340 for ZIP 59433 does not directly indicate whether it will cover the mortgage on a $259,726 home. However, using a standard mortgage calculation with an average interest rate of around 4%, a monthly mortgage payment on a $259,726 home would be approximately $1,275 for a 30-year fixed mortgage without any down payment. This means that the FMR could indeed cover the mortgage payment, leaving some room for property taxes, insurance, and maintenance costs.

• Is there enough renter demand at 34.6%? With a rental occupancy rate of 34.6%, some investors might question the level of demand. However, this percentage alone does not provide a complete picture. To accurately assess the demand, we would need additional data such as the vacancy rate, the number of renters in the area, and the trend over time. While the 34.6% indicates a portion of the housing stock is rented, it does not necessarily mean there isn't sufficient demand. If the vacancy rate is low and there is a steady increase in the number of renters, the demand could still be strong despite the seemingly low rental occupancy rate.

• Will vouchers keep pace with $754 market rents? The market rent of $754 per month is significantly lower than the FMR of $1,340, which suggests that vouchers should adequately cover the cost of renting in this area. However, the key factor here is the voucher utilization rate and the waiting list length for Section 8 vouchers. Without specific data on these points, we cannot conclusively state that vouchers will keep pace with market rents. It's important to note that even if vouchers do cover the rent, landlords must also consider the administrative burden and potential delays in receiving payments.

The data provided gives us a partial view of the investment landscape in ZIP 59433, but it is crucial to seek out additional metrics to make a fully informed decision. For instance, knowing the trend in rental demand and the specifics of voucher administration can help mitigate risks and clarify expectations.

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.