Section 8 Fair Market Rent (FMR) for ZIP 67049 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should invest in ZIP code 67049 for Section 8 properties, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $950 cover the debt service on a property?

• No: If the FMR does not cover your debt service, buying a property in 67049 would be financially unwise. Debt service includes mortgage payments, property taxes, insurance, and other fixed costs. Ensure that $950 can support these expenses before proceeding.
• Yes: If the FMR of $950 is sufficient to cover your debt service, proceed to the next question.

2) How does the market rent compare to the FMR?

• Market Rent Below FMR: If the market rent is below the FMR, you might consider investing as you could potentially rent out the property to non-Section 8 tenants at a higher rate, maximizing your income. However, ensure there's enough demand for rental properties in the area.
• Market Rent Equal to FMR: This scenario suggests a balanced market where Section 8 rents match the local average. It depends on your investment strategy and whether you're comfortable with the FMR being the primary income source.
• Market Rent Above FMR: In this case, renting to Section 8 tenants may not be optimal unless you're specifically targeting affordable housing. Consider the broader rental market dynamics and tenant preferences.

3) Is the combination of 0.0% renters and N/A-day days on market (DOM) indicative of sufficient demand?

• 0.0% Renters: This indicates that no current residents in 67049 are renters, suggesting low demand for rental properties. Investing in a Section 8 property under these conditions would likely result in long-term vacancy and financial strain.
• N/A-Day DOM: The absence of data regarding days on market makes it difficult to assess how quickly properties are rented. Without this information, the decision to invest hinges on the answers to the first two questions and any additional market research you can conduct.

In summary, if the FMR of $950 cannot cover your debt service, do not invest in ZIP 67049 for Section 8 properties. If the market rent is above the FMR, consider the broader market and potential for non-Section 8 tenants. With 0.0% renters and missing DOM data, the demand for rental properties appears insufficient, making investment risky without 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.