Section 8 Fair Market Rent (FMR) for ZIP 62462 - 2027

Investment Score for ZIP 62462

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP 62482 might have several concerns regarding the viability of investing in properties that cater to Section 8 tenants. Let's address these concerns head-on using the available data.

• Objection: Will FMR $920 (metro FY 2026) cover the mortgage on a $214,860 home? The Fair Market Rent (FMR) of $920 in ZIP 62482 for fiscal year 2026 is designed to reflect the average rental cost for a standard two-bedroom apartment in the area. To determine if this amount can cover the mortgage on a $214,860 home, we must consider the typical interest rates and loan terms. Assuming an interest rate of 4% and a 30-year fixed mortgage, the monthly mortgage payment on a $214,860 home would be approximately $1,030. This means that the FMR does not fully cover the mortgage payment. However, it's important to note that the FMR is just one part of the equation; landlords also receive a security deposit and may benefit from tax incentives and other subsidies that can help offset the financial gap.
• Objection: Is there enough renter demand at 12.3%? With only 12.3% of the population renting in ZIP 62482, some investors might question whether there is sufficient demand to fill rental units. However, the percentage alone does not tell the whole story. It's essential to look at the absolute number of renters and the vacancy rate to understand the actual demand. If the vacancy rate is low and the total number of renters is substantial, then even a seemingly low percentage can translate into robust demand. Unfortunately, the provided data does not include the vacancy rate or the total number of renters, which are critical metrics for assessing demand. Without these figures, it's challenging to make a definitive statement about the adequacy of the rental market in this ZIP code.
• Objection: Will vouchers keep pace with $760 market rents? The Section 8 Housing Choice Voucher program aims to provide assistance to low-income families, ensuring that their housing costs do not exceed 30% of their income. In ZIP 62482, the market rent for a two-bedroom apartment is $760. Whether vouchers will keep pace with this figure depends on the local housing authority's funding and policy decisions. Typically, voucher amounts are adjusted annually based on changes in the FMR. Given that the FMR is set at $920, it suggests that vouchers should be able to cover the $760 market rent. However, it's crucial to monitor any changes in the voucher allocation process and funding levels to ensure sustained coverage of market rents.

The data presents a mixed picture for investors considering ZIP 62482. While the FMR does not fully cover the mortgage payment, other factors such as deposits and subsidies can mitigate this shortfall. The lack of detailed information on the rental market's size and vacancy rate makes it difficult to assess the overall demand accurately. Lastly, the voucher system appears capable of keeping up with current market rents, but vigilance is required to track any future adjustments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.