Section 8 Fair Market Rent (FMR) for ZIP 65247 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To understand the economics of Section 8 housing in ZIP code 65247, it's crucial to know the specifics of the SAFMR (Small Area Fair Market Rent) and how it interacts with local market conditions. For fiscal year 2026, the SAFMR for a two-bedroom apartment in this ZIP code is set at $940. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent.

The SAFMR is designed to reflect the rental costs in a specific geographic area, ensuring that subsidies are adjusted to local market realities. However, the local market rent for a two-bedroom unit in ZIP 65247 is currently unreported, which means landlords must rely on the SAFMR to gauge their rental income potential under the Section 8 program.

When a landlord participates in Section 8 with a tenant who has a voucher, the payment structure works as follows:

• Tenant Portion: The tenant is responsible for paying 30% of their monthly adjusted income toward rent. This amount is determined by the Department of Housing and Urban Development (HUD) based on the tenant's financial situation.
• Voucher Payment: The Section 8 voucher then covers the difference between the tenant's portion and the SAFMR. In ZIP 65247, this would be up to $940 minus the tenant's contribution.
• Utility Allowances: Additional funds may be provided to cover utilities, but these are separate from the rent reimbursement and do not increase the total SAFMR. Landlords should be aware that utility allowances can vary and are calculated separately based on the tenant's needs and the local cost of utilities.

Given the SAFMR of $940, if a tenant's portion is $300 (for example), the voucher would cover the remaining $640. Therefore, the landlord would receive a total of $940 ($300 from the tenant and $640 from the voucher). If the local market rent is higher than $940, landlords will face a shortfall, as they cannot charge more than the SAFMR to the voucher program. Conversely, if the market rent is lower, landlords might see a surplus, though this is less likely given the SAFMR is intended to be reflective of average market rates.

In ZIP 65247, without specific local market rent data, we can assume that landlords participating in Section 8 will either break even or have a slight surplus if market rents are below $940. However, they will incur a loss if the actual market rent exceeds $940, as they cannot pass on the excess cost to the tenant or the voucher program.

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.