Section 8 Fair Market Rent (FMR) for ZIP 64453 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering ZIP code 64453 for Section 8 investments must follow a structured decision-making process based on the Fair Market Rent (FMR), which is set at $940 for the metro area in fiscal year 2026. This analysis will guide you through key factors to determine if purchasing property in this ZIP code is advisable.

1) Does FMR of $940 cover the debt service on a $146,334 property?

• If your property costs $146,334, the FMR of $940 per month must be sufficient to meet the mortgage payment and other ongoing expenses. Calculate your total monthly debt service, including principal, interest, taxes, and insurance. If the FMR does not exceed these costs, then the answer is No. You should not purchase a property for Section 8 if the FMR cannot cover the basic financial obligations.
• If the FMR of $940 exceeds your monthly debt service, proceed to the next question.

2) Is the market rent above, at, or below the FMR of $940?

• The market rent for ZIP 64453 is currently N/A, indicating that there is insufficient data to make a direct comparison with the FMR. In such cases, you must research further to understand the local rental market dynamics. If the market rent is consistently above $940, it suggests strong demand and potentially higher returns on investment outside of Section 8. If it is below, the FMR might provide better income stability.
• If market rent remains unknown, consider the demand for rentals in the area.

3) Are 2.7% of the population renters, with N/A days as Days on Market (DOM), enough demand?

• The percentage of renters at 2.7% indicates a relatively low demand for rental properties in ZIP 64453. However, the Days on Market (DOM) being N/A means there's no clear indication of how quickly properties are typically leased. To assess viability:
• If the DOM is high, it implies slower turnover and less demand, making the answer No. The market conditions do not support frequent leasing, which could impact cash flow negatively.
• If the DOM is low, it suggests strong demand despite the low renter percentage, leading to an It Depends scenario. You would need to weigh the low renter percentage against the quick turnover rates to decide.
• In cases where the DOM data is unavailable, you must rely on the renter percentage and potentially conduct additional research into the local rental market trends and vacancy rates.

To conclude, the decision to invest in ZIP 64453 for Section 8 properties hinges on whether the FMR can cover your debt service, the relationship between market rent and FMR, and the overall demand for rentals. Without specific market rent figures and DOM data, the final decision will depend on further investigation into the local rental market.

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.