Section 8 Fair Market Rent (FMR) for ZIP 68416 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering investing in ZIP code 68416 for Section 8 should follow this decision tree:

1) Does FMR ($960/metro FY 2026) clear debt service on a $180,283 property?

• No: The Federal Market Rent (FMR) of $960 does not sufficiently cover the debt service on a property valued at $180,283. This makes the investment unprofitable under current conditions.
• It Depends: To determine if the FMR clears debt service, calculate the monthly mortgage payment, including principal, interest, taxes, and insurance. For instance, if the total monthly debt service is $700, then the FMR would cover it, making the investment viable. However, if the total monthly debt service exceeds $960, the investment would not be profitable based solely on Section 8 income.

2) Is market rent ($332/Census ACS) above, at, or below FMR?

• Below FMR: The average market rent of $332 is significantly below the FMR of $960. This indicates that renting to non-Section 8 tenants would not be as lucrative as renting to Section 8 participants, suggesting a favorable environment for Section 8 investments.
• At or Above FMR: If the market rent were to rise and meet or exceed the FMR, it could signal a more competitive rental market. Landlords might consider the potential for higher rents from private tenants, which could impact the desirability of Section 8 investments.

3) Are 24.5% renters + N/A-day DOM enough demand?

• Yes: With 24.5% of residents being renters, there is a sufficient base of potential Section 8 tenants. The lack of data on Days on Market (DOM) suggests either a low turnover rate or that properties are rented quickly once they become available. In either case, the demand appears stable and likely to support Section 8 investments.
• It Depends: Without specific DOM data, it's challenging to assess how quickly properties are rented. A high DOM could indicate difficulty in finding tenants, while a low DOM would suggest strong demand. Additionally, the percentage of renters is a positive indicator but should be considered alongside other factors such as local unemployment rates and the availability of Section 8 vouchers.

Based on the given data, ZIP 68416 presents an opportunity for Section 8 investments, particularly if the debt service can be managed within the FMR limit. The lower market rent compared to FMR further supports this, indicating that Section 8 can provide a more stable income stream. However, the absence of DOM data means landlords must consider additional local economic indicators to make a fully informed 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.