Section 8 Fair Market Rent (FMR) for ZIP 61491 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP 61491 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's break down these concerns and address them with the available data.

• Will FMR $810 (zip FY 2024) cover the mortgage on a $134,691 home? The Fair Market Rent (FMR) for ZIP 61491 in fiscal year 2024 is set at $810. To determine if this amount can cover the mortgage on a home valued at $134,691, we must consider the prevailing interest rates and typical loan terms. At an average fixed-rate mortgage rate of around 5%, a 30-year mortgage on a $134,691 home would result in monthly payments that exceed $810. However, it's important to note that property taxes, insurance, and maintenance costs also need to be factored into the total monthly expenses. Therefore, while the FMR alone does not cover the mortgage payment, a comprehensive financial plan that includes these additional factors could still make the investment viable.
• Is there enough renter demand at 20.4%? The rental vacancy rate in ZIP 61491 stands at 20.4%. This figure suggests that there is a significant amount of rental housing available relative to the number of renters. A high vacancy rate can indicate weak demand, which might deter investors. However, a 20.4% vacancy rate is not necessarily indicative of poor demand. It's crucial to compare this rate against historical trends and local market conditions to understand if the current rate is a temporary anomaly or a persistent issue. Additionally, the rental market dynamics can change rapidly due to economic shifts, population growth, or other factors, so ongoing monitoring of the area's rental market is essential.
• Will vouchers keep pace with $675 market rents? The market rent in ZIP 61491 is reported at $675. Given that the FMR is higher at $810, it's reasonable to assume that voucher holders will have a budget that aligns closer to the FMR rather than the market rent. This means that vouchers should generally cover the $675 market rent, leaving some margin for profit. However, the key consideration here is whether the voucher amounts are adjusted annually to reflect changes in the cost of living and market conditions. If they are not, it could lead to situations where the voucher amount falls below the actual market rent, creating financial strain for landlords. It's advisable to stay informed about any updates to voucher policies and local rent control measures.

The data provided gives us a snapshot of the current situation in ZIP 61491, but it's important to recognize that investing in real estate involves many variables beyond just these figures. Continuous evaluation of the local economy, housing market trends, and tenant demographics will be necessary to ensure long-term success.

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.