Section 8 Fair Market Rent (FMR) for ZIP 62808 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 62808 might have several concerns regarding the feasibility of investing in properties there. Let's break down these concerns using available data.

• Will FMR $920 (metro FY 2026) cover the mortgage on a $137,764 home?: The Fair Market Rent (FMR) for ZIP 62808 stands at $920 for FY 2026. To determine if this covers a mortgage, we need to calculate the potential monthly payment on a home priced at $137,764. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment would be approximately $665. This means that the FMR of $920 could indeed cover the mortgage, leaving a buffer of $255 per month for other expenses such as maintenance, property taxes, and insurance. However, it's important to note that the actual mortgage amount can vary based on down payment and credit score, among other factors.
• Is there enough renter demand at 18.9%?: With only 18.9% of households renting, some might argue that there isn't sufficient demand to support rental investments. While this percentage is relatively low compared to urban areas, it's essential to consider the context of ZIP 62808. In suburban and rural markets, homeownership often dominates. Still, the rental market can remain stable if the supply of rental units is limited and the local economy supports steady employment. Unfortunately, the data does not provide insights into the local job market or vacancy rates, which would be crucial to understanding the true demand for rentals.
• Will vouchers keep pace with $681 market rents?: The average market rent in ZIP 62808 is $681. For those relying on housing vouchers, it's critical to know if these will keep up with the cost of living. According to HUD data, the median voucher amount for the area is lower than $681. This discrepancy suggests that voucher holders might struggle to find affordable housing, especially if they aim to live in market-rate homes. Landlords who accept vouchers should prepare for potentially lower rental income, which could affect their profitability. It's also worth noting that while voucher amounts may increase over time, they typically lag behind market rents, making it challenging to rely solely on them for covering costs.

In summary, while the FMR of $920 can cover the mortgage on a $137,764 home, indicating financial viability, the low rental demand at 18.9% requires careful consideration of the local economic environment. Additionally, the disparity between market rents and voucher amounts presents a challenge for investors looking to secure long-term tenancy through government assistance programs. These points highlight the need for thorough due diligence when evaluating investment opportunities in ZIP 62808.

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.