Section 8 Fair Market Rent (FMR) for ZIP 59750 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 59750 might raise several concerns regarding the feasibility of investing in properties within this area under the Section 8 program. Let's address these points head-on with the available data.

• Will FMR $1,320 (metro FY 2026) cover the mortgage on a $584,197 home? The Fair Market Rent (FMR) for ZIP 59750 in fiscal year 2026 is set at $1,320. To determine if this amount can sufficiently cover a mortgage on a property valued at $584,197, we need to consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $584,197 home would be approximately $2,890. Clearly, the FMR of $1,320 is insufficient to cover the mortgage alone. However, it's important to note that this figure does not include potential tax benefits, such as property tax deductions and depreciation, which could offset some of the financial burden. Additionally, landlords might consider renting out additional units or spaces within the property to diversify income sources.
• Is there enough renter demand at 0.0%? The data indicates that the percentage of renters in ZIP 59750 who qualify for Section 8 assistance is 0.0%. This suggests that there is virtually no demand for Section 8 rental units in this area. Given this, it's unlikely that a landlord would find tenants through the Section 8 program in ZIP 59750. Instead, they might have to rely on non-assisted renters or seek alternative housing assistance programs that may have higher participation rates in the area.
• Will vouchers keep pace with N/A market rents? The data provided does not specify the current market rents in ZIP 59750, marked as N/A. Without this information, it's challenging to assess whether vouchers will keep up with market rates. Typically, voucher amounts are adjusted annually based on local market conditions, but the lack of specific market rent data means we cannot definitively say how well vouchers will match actual rental costs. Landlords should monitor local housing trends and consult with HUD officials to stay informed about any adjustments to voucher amounts.

The analysis of ZIP 59750 reveals significant challenges for landlords and small-portfolio investors interested in the Section 8 program. Insufficient FMR coverage for mortgage payments and a lack of qualified renters present obstacles. Furthermore, without clear data on current market rents, assessing the adequacy of voucher amounts remains uncertain. These factors must be carefully weighed against other potential investment opportunities and strategies to ensure financial viability.

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.