Section 8 Fair Market Rent (FMR) for ZIP 68050 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering investing in ZIP code 68050 for Section 8 properties must follow a structured decision-making process based on the financial metrics and demand factors. Here's how to approach the decision:

• Does FMR ($890) clear debt service on a $278,315 property?
  • Yes. If the landlord can secure a mortgage rate that allows the Fair Market Rent (FMR) of $890 to cover the monthly debt service, then the investment is financially viable. Assuming an average mortgage rate, the monthly payment on a $278,315 property would be approximately $1,200 to $1,300, depending on the term and down payment. With an FMR of $890, the landlord would need to ensure that the remaining costs, such as property taxes, insurance, and maintenance, do not exceed the FMR. If they can manage these expenses effectively, the answer is yes.
  • No. If the FMR of $890 does not cover the monthly debt service, which includes mortgage payments, property taxes, insurance, and other fixed costs, the investment is not financially sound. Landlords must calculate their total monthly obligations and compare them to the FMR. If the FMR falls short, the landlord should reconsider purchasing in this area unless they can find ways to reduce costs or increase income.
• Is market rent ($850) above, at, or below FMR?
  • Above FMR. If the market rent exceeds the FMR, landlords can expect to face challenges in finding tenants willing to pay the higher market rates. They will need to consider whether the additional income justifies the reduced demand for Section 8 properties.
  • At FMR. If the market rent aligns closely with the FMR, landlords can expect a balanced market where demand and supply are relatively equal. This scenario provides a stable environment for Section 8 investments.
  • Below FMR. If the market rent is below the FMR, landlords have a competitive advantage in attracting tenants. However, they must also consider the potential for lower occupancy rates if the demand is not strong enough.
• Are 10.9% renters + N/A-day days on market (DOM) enough demand?
  • It depends. The percentage of renters at 10.9% indicates a modest rental market presence in the area. However, without specific data on days on market (DOM), it's challenging to assess the liquidity of the rental market. If the DOM is low, meaning properties are rented quickly, then the demand is sufficient. Conversely, if the DOM is high, indicating slow turnover, landlords may struggle to maintain consistent occupancy rates. Additional research into local rental trends and vacancy rates is necessary to make a final determination.

To conclude, the viability of a Section 8 investment in ZIP 68050 hinges on the ability to clear debt service with the FMR, the alignment between market rents and FMR, and the strength of rental demand. Landlords must carefully evaluate these factors before making a purchase decision.

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.