Section 8 Fair Market Rent (FMR) for ZIP 67570 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 67570

• South Hutchinson Housing Authority (South Hutchinson, KS)

When considering whether to invest in ZIP code 67570 (Pretty Prairie, KS) for Section 8 properties, follow this decision tree based on the provided data.

1) Does the Fair Market Rent (FMR) of $880 cover the debt service on a property valued at $177,560?

• Yes: The FMR of $880 per month is sufficient to cover the debt service on a property costing $177,560. This means that the rental income will meet the mortgage obligations, making the investment viable from a financial standpoint.
• No: The FMR of $880 per month does not cover the debt service on a property priced at $177,560. In this case, the investment would be financially unwise unless there are other sources of income or subsidies available.

2) Is the market rent of $850 above, at, or below the FMR?

• Above: If the market rent exceeds $880, then the property is overpriced relative to the FMR. This situation reduces the likelihood of securing Section 8 tenants who are restricted by the FMR cap.
• At: The market rent of $850 is slightly below the FMR, indicating that the property aligns well with the maximum allowable rent for Section 8 tenants. This makes it attractive for those seeking Section 8 vouchers.
• Below: Since the market rent is already below the FMR, this indicates a good alignment with Section 8 standards, potentially attracting more tenants.

3) Do 16.3% of renters plus an unspecified number of days on the market (DOM) indicate enough demand?

• Yes: If the DOM is low, then the 16.3% of renters suggests a healthy demand for rental properties in Pretty Prairie. Low DOM indicates that properties are rented quickly, which is positive for turnover and occupancy rates.
• No: If the DOM is high, then despite the 16.3% of renters, the demand may not be robust enough to ensure quick leasing of the property. High DOM can lead to extended vacancy periods, negatively impacting cash flow.
• It Depends: Without knowing the exact DOM, it's challenging to make a definitive statement. However, a 16.3% rental rate is moderate; if DOM is average, the demand could still support a Section 8 investment.

In conclusion, ZIP 67570 is a reasonable consideration for a Section 8 investment if the FMR covers the debt service and the DOM is sufficiently low to indicate strong demand. The market rent being below the FMR is favorable for attracting Section 8 tenants.

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.