Section 8 Fair Market Rent (FMR) for ZIP 62909 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should invest in ZIP 62909 for Section 8 properties, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

• If the Fair Market Rent (FMR) of $910 does not cover the debt service on your property, the answer is No. You cannot afford to maintain the property without losing money.
• If the FMR of $910 does cover the debt service, proceed to Step 2.

Step 2: Market Rent Comparison

• If the market rent is above $910, the answer is It Depends. You will need to evaluate whether the difference between market rent and FMR justifies the lower occupancy rates typical of Section 8 properties.
• If the market rent is equal to $910, the answer is Yes. This indicates that Section 8 tenants can pay the full market rate, making it a viable investment option.
• If the market rent is below $910, the answer is No. Accepting Section 8 tenants would mean renting your property below the market rate, which is not advisable unless there is significant demand.

Step 3: Demand Assessment

• If the percentage of renters is high and the days on market (DOM) is low, the answer is Yes. High demand means you can likely find enough Section 8 tenants to fill your property.
• If the percentage of renters is moderate but the DOM is still low, the answer is It Depends. You might still be able to attract enough tenants, but it will require active management and possibly some incentives.
• If the percentage of renters is low or the DOM is high, the answer is No. There is insufficient demand to justify the investment in Section 8 properties in this area.

Note: Due to missing data points (N/A), the exact percentages of renters and market rent figures for ZIP 62909 could not be provided. Therefore, you must research these values specifically for ZIP 62909 before making an informed decision.

Data Sources: FMR data from HUD (2027).

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.