Section 8 Fair Market Rent (FMR) for ZIP 61442 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP 61442 might have several concerns regarding the feasibility of investing in rental properties here. Let's address these objections head-on using the available data.

• Will FMR $860 (zip FY 2024) cover the mortgage on a $78,018 home?: The Fair Market Rent (FMR) of $860 for ZIP 61442 in fiscal year 2024 provides a baseline for rental income expectations. To determine if this amount can cover the mortgage on a $78,018 home, consider an average mortgage rate. Assuming a 4.5% fixed-rate mortgage over 30 years, the monthly payment on a $78,018 home would be approximately $387. This means that the FMR of $860 could indeed cover the mortgage payments, leaving a surplus of around $473 per month. However, this analysis does not account for property taxes, insurance, maintenance costs, or other expenses landlords may incur.
• Is there enough renter demand at 18.6%?: With 18.6% of households renting in ZIP 61442, the question arises whether this percentage indicates sufficient demand. While 18.6% might seem low compared to urban areas, it is important to note that rental demand is also influenced by factors such as population growth, employment opportunities, and housing preferences. Without specific data on these factors, we cannot definitively conclude the level of demand. However, given the FMR and the potential surplus after covering mortgage payments, there appears to be a reasonable market for rental properties.
• Will vouchers keep pace with $607 market rents?: The Housing Choice Voucher program, commonly known as Section 8, aims to provide affordable housing assistance to eligible low-income families. In ZIP 61442, the market rent is $607, which is below the FMR of $860. While the voucher program is designed to cover a significant portion of rent, it is subject to federal funding and local administration. Historically, voucher amounts have been adjusted to reflect changes in the housing market, but they do not always match the exact market rates. Given the lower market rent compared to the FMR, landlords accepting vouchers in ZIP 61442 are likely to see a smaller gap between the voucher amount and the actual rent, making it more feasible to accept vouchers without substantial loss.

The data presents a mixed picture for investment in ZIP 61442. While the FMR is adequate to cover mortgage payments and potentially offer a surplus, the lack of detailed information on population trends and other economic indicators makes it challenging to assess the overall demand for rentals. Moreover, the relationship between voucher amounts and market rents suggests that landlords may still find the program beneficial, despite the inherent uncertainties.

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.