Section 8 Fair Market Rent (FMR) for ZIP 64451 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to invest in ZIP code 64451 for Section 8 properties, follow this decision tree:

1) Does FMR ($940) clear debt service on a property?

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $940. This figure must exceed the total debt service, including mortgage payments, insurance, taxes, and maintenance costs. If your property's debt service is less than $940, then the answer is yes; you can cover your expenses with Section 8 rents. If the debt service is higher, the answer is no; it would not be financially viable.

2) Is market rent ($675) above, at, or below FMR?

The average market rent in ZIP 64451, according to Census ACS data, is $675. Since this is below the FMR of $940, landlords who choose to participate in Section 8 could potentially see a higher rental income compared to market rates. This makes Section 8 participation more attractive if the goal is to maximize revenue relative to typical market conditions.

3) Are 38.2% renters + N/A-day DOM enough demand?

In ZIP 64451, 38.2% of households are renters. The Days on Market (DOM) for properties is not specified, which means we cannot definitively assess the speed at which units are rented out. However, with nearly 40% of households renting, there is substantial demand for rental properties. If the DOM is low, indicating quick turnover, this suggests strong demand that could support Section 8 tenancy. Conversely, if DOM is high, it might imply a saturated market or difficulty in finding tenants.

• If Yes to all: Invest in Section 8 properties in ZIP 64451. The FMR covers debt service, market rent is lower, and there is significant rental demand.
• If No to any: Reconsider investing in this ZIP code. Either the FMR does not cover your debt service, market rent is competitive or higher, or there is insufficient demand to justify the investment.
• If It Depends: Further investigation into the local real estate market is needed, particularly regarding the DOM for rental properties. This will clarify the ease of finding tenants and the overall viability of Section 8 investments in this area.

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.