Section 8 Fair Market Rent (FMR) for ZIP 62908 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking into ZIP 62908 might have several concerns regarding the viability of offering rental properties under the Section 8 program. Let's address these concerns with the available data.

• Will FMR $910 (zip FY 2024) cover the mortgage on a $159,578 home? The Fair Market Rent (FMR) of $910 for ZIP 62908 in fiscal year 2024 is a critical figure to consider when deciding whether to accept Section 8 tenants. To determine if this amount can cover the mortgage, we must first calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly principal and interest payment on a $159,578 home would be approximately $775. This means that the FMR of $910 could indeed cover the mortgage payment, leaving a surplus of $135 per month. However, it's important to note that this calculation does not include property taxes, insurance, maintenance, and other costs associated with owning a rental property.
• Is there enough renter demand at 7.4%? The rental vacancy rate of 7.4% in ZIP 62908 suggests that there is a moderate level of competition among landlords. A vacancy rate below 10% generally indicates a healthy rental market, but the percentage alone does not provide a complete picture of the demand. To better understand the situation, an analysis of the population demographics and employment rates in the area would be necessary. Unfortunately, the data provided does not offer insights into these factors. It is advisable to investigate further to gauge the actual demand for rental properties in this ZIP code.
• Will vouchers keep pace with N/A market rents? The data provided does not include specific information about the trend of voucher amounts relative to market rents in ZIP 62908. Without this information, it is challenging to make a definitive statement. However, historically, voucher amounts have been adjusted periodically to reflect changes in market conditions. Landlords should monitor local HUD announcements and updates to ensure they are aware of any changes in voucher policies that could affect their rental income. In the absence of direct comparisons, landlords should also consider the stability and reliability of voucher payments compared to traditional rental income.

The data shows that while the FMR can potentially cover the mortgage payment on a $159,578 home, there are other financial considerations that need to be addressed. Additionally, the rental vacancy rate alone is not sufficient to assess the overall demand for rental properties. Lastly, the lack of historical data makes it difficult to predict how well vouchers will keep up with market rents in the future. These points highlight the importance of thorough research and due diligence before making investment decisions in ZIP 62908.

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.