Section 8 Fair Market Rent (FMR) for ZIP 65463 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 65463 for Section 8 investments, follow these steps:

• Step 1: Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for ZIP 65463 in fiscal year 2024 is $800. This figure must cover your debt service on any property you consider purchasing. If $800 does not sufficiently cover the mortgage payments and other expenses, then the answer is No. Proceed only if the FMR comfortably exceeds your total debt obligations.
• Step 2: Compare Market Rent to FMR: The average market rent for ZIP 65463, according to Census ACS data, is $538. Since this is below the FMR of $800, there's potential for higher rents when occupied by Section 8 tenants. However, landlords must be aware that the actual rent received from Section 8 will be the lower of the market rent or the FMR. Therefore, if your goal is to maximize rental income, the answer is It Depends. It depends on whether you can find properties where the market rent is close to or below the FMR, thus allowing you to fully utilize the FMR rate.
• Step 3: Evaluate Rental Demand: In ZIP 65463, 57.7% of the population are renters. Additionally, the number of days on the market (DOM) is not specified, which makes it challenging to assess how quickly properties might be rented. Assuming the DOM is reasonable and supports quick leasing, the high percentage of renters suggests strong demand. Thus, if you can secure properties quickly and efficiently, the answer is Yes. There is sufficient demand to support Section 8 rentals. However, without knowing the DOM, the exact demand cannot be quantified, so the answer leans towards It Depends.

In conclusion, ZIP 65463 presents an opportunity for Section 8 investments due to the disparity between the market rent and FMR, as well as the significant portion of renters. However, the final decision hinges on your ability to find properties where the debt service is covered by the FMR and the DOM is short enough to ensure timely occupancy. Ensure you conduct thorough research on individual properties and local market conditions before making any investment decisions.

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.