Section 8 Fair Market Rent (FMR) for ZIP 62885 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 62885 for Section 8 purposes, follow this decision tree:

• Does FMR $920 (metro FY 2026) clear debt service on a $166,064 property?
  • Yes: The Fair Market Rent (FMR) of $920 is sufficient to cover the debt service on a property valued at $166,064. This means that a landlord can expect to receive enough rental income to meet mortgage payments and other financial obligations associated with the property.
  • No: If the FMR does not clear the debt service, purchasing in this area would be financially unwise for Section 8 purposes. The landlord would need to ensure that the rental income meets or exceeds the necessary financial requirements.
• Is market rent N/A (N/A) above, at, or below FMR?
  • Above FMR: If the market rent is higher than the FMR of $920, landlords might consider seeking non-Section 8 tenants who can pay the higher market rates. However, this also indicates that Section 8 vouchers may not cover the full cost of renting, which could reduce the pool of potential tenants.
  • At FMR: Market rents matching the FMR suggest a balanced scenario where Section 8 tenants can afford the rent without significant adjustments. This makes the ZIP code a viable option for landlords interested in Section 8 housing.
  • Below FMR: If market rents are below the FMR, landlords could potentially charge closer to the FMR rate for Section 8 tenants, making the investment more attractive. However, this could also indicate a lower demand for rental properties in general.
• Are 8.8% renters + N/A-day DOM enough demand?
  • Yes: With 8.8% of the population being renters, there is a steady demand for rental properties. Additionally, if the days on market (DOM) for properties are low, this suggests that rentals are turning over quickly and that there is a good market for Section 8 units.
  • No: If the DOM is high, indicating slow turnover, and the percentage of renters is low, this ZIP code may not provide sufficient demand for Section 8 properties. Landlords should consider areas with higher rental demand and faster turnover times.
  • It Depends: Without specific DOM data, it's difficult to make a definitive judgment. However, the 8.8% renter statistic provides some assurance of demand. Landlords will need to research further into local rental trends and competition to make an informed decision.

The analysis of ZIP 62885 shows that while the FMR of $920 can support a property valued at $166,064, the lack of market rent data introduces uncertainty. The 8.8% renter population indicates some demand, but without knowing the DOM, it's unclear how competitive the rental market is. Landlords must weigh these factors carefully before deciding to invest in this ZIP code for Section 8 purposes.

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.