Section 8 Fair Market Rent (FMR) for ZIP 63045 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 63045 presents several challenges for landlords and small-portfolio investors considering Section 8 investments. Tenant turnover is a significant concern, with the Fair Market Rent (FMR) for the area set at $1290 for FY 2024, which does not align with the local market rent. This discrepancy can lead to higher tenant churn as the FMR may not reflect the true cost of living or attract tenants who prefer market-rate housing.

Vacancy exposure is another critical risk factor. With no data available on the average days on market (DOM), it's difficult to predict how long properties might remain vacant between tenancies. High vacancy rates can significantly impact cash flow, especially if the gap between tenants extends beyond expectations.

Deferred maintenance is also a potential issue. Without specific data on the typical home values and median incomes in ZIP 63045, it's challenging to assess the financial health of property owners and their ability to maintain homes adequately. Poor maintenance can result in higher repair costs and potential compliance issues with Section 8 requirements.

However, these risks must be weighed against the high concentration of renters in the area. While the exact percentage of renter share is not specified, a high renter density typically translates into greater demand for rental properties, including those that accept Section 8 vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants willing to use their vouchers in the area.

Verdict: Moderate risk for a first-time Section 8 landlord.

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.