Section 8 Fair Market Rent (FMR) for ZIP 64458 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To decide whether to invest in ZIP code 64458 for Section 8 properties, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $920 cover the debt service on a property?

• No: The FMR does not clear the debt service on a property in this area. This makes it unfeasible to purchase a property solely based on Section 8 income.
• Yes: Proceed to the next question.

2) Is the market rent above, at, or below the FMR of $920?

• Market rent is below $920: Section 8 tenants will likely pay more than what the market demands. This can be advantageous if you're looking to maintain occupancy rates higher than the market average.
• Market rent is at $920: Section 8 income matches the market rent. This scenario indicates that the property will generate income similar to non-subsidized units, making it a neutral choice.
• Market rent is above $920: Section 8 tenants will pay less than the market rate. This could result in lower overall income compared to renting to non-subsidized tenants. However, consider the stability and guaranteed income that comes with Section 8.

3) Are 0.0% of renters in the area combined with N/A-day days on the market indicative of sufficient demand?

• 0.0% renters: This statistic suggests there is no rental activity recorded in the dataset, which implies a lack of demand for rentals in general. It would be challenging to find Section 8 tenants or any other type of tenant in this environment.
• N/A-day days on the market: Without specific data on how long properties remain unsold or unrented, it's difficult to assess the market's absorption rate. This uncertainty can affect your ability to predict when a property will be occupied.

In conclusion, ZIP code 64458 presents significant challenges for a landlord considering Section 8 investment. The lack of rental activity and the unclear market conditions make it a risky proposition. Additionally, the FMR of $920 may not be sufficient to cover debt service on a property, further complicating the feasibility of such an investment.

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.