Section 8 Fair Market Rent (FMR) for ZIP 62842 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering ZIP 62842 for Section 8 investments must evaluate several factors to make an informed decision. Begin your analysis with the following key questions:

1) Does the Fair Market Rent (FMR) of $1,120 cover the debt service on a property valued at $126,792?

• If the debt service on a property is less than or equal to $1,120 per month, then the answer is Yes. The FMR would adequately support the mortgage payments, making it financially viable for a landlord to consider this ZIP code.
• If the debt service exceeds $1,120 per month, then the answer is No. A landlord would be unable to cover their mortgage obligations solely through Section 8 rental income, thus making this investment unprofitable.

2) How does the market rent of $813 compare to the FMR?

• If the market rent is below the FMR, then the answer is It Depends. While landlords can charge up to the FMR, they need to assess if there is sufficient demand at that higher price point. Additionally, landlords should consider the potential for vacancy periods during which they might only receive market rent.
• If the market rent is equal to or above the FMR, then the answer is Yes. This indicates that landlords could potentially command rents close to or above the FMR, thereby maximizing their income from Section 8 tenants.

3) Is the combination of 11.5% of the population being renters and the unknown days on market (DOM) indicative of sufficient demand?

• If the DOM is low and there is a high turnover rate among rentals, indicating strong demand, then the answer is Yes. Even though the percentage of renters is relatively modest, quick leasing periods suggest that properties will not remain vacant for long, providing steady income.
• If the DOM is high, suggesting slow leasing periods, then the answer is No. Landlords would face extended vacancy periods, reducing their ability to generate consistent income from Section 8 properties.
• If the DOM is moderate and the leasing process is neither too fast nor too slow, then the answer is It Depends. Landlords should further investigate the local housing market trends and tenant preferences to determine if the demand is sufficient to justify an investment.

The viability of purchasing a property in ZIP 62842 for Section 8 purposes hinges on these considerations. Ensure that the FMR sufficiently covers debt service, that market rent aligns favorably with the FMR, and that the rental market shows signs of sustained demand.

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.