Section 8 Fair Market Rent (FMR) for ZIP 69125 - 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 69125 for Section 8 purposes, follow this decision tree:

• Step 1: Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $1,050. For a property valued at $194,639, calculate whether this FMR can cover the debt service. If the DSCR is less than 1, meaning the income does not cover the expenses, then the answer is No. Otherwise, proceed to Step 2.
• Step 2: Market Rent Comparison: The market rent for the area is currently N/A. If the market rent were above the FMR, it would indicate that there is potential for higher rental income outside of Section 8, which might make the investment less attractive for those strictly interested in Section 8 properties. If the market rent is equal to or below the FMR, then the answer is It Depends on other factors such as demand and vacancy rates. Proceed to Step 3.
• Step 3: Rental Demand and Vacancy Rates: In ZIP 69125, 17.8% of residents are renters, and the days on market (DOM) is N/A. If the DOM is low, it suggests strong demand and quick turnover, which could be favorable for Section 8 investments. However, with the DOM being N/A, we must rely on the percentage of renters. A 17.8% rental rate indicates moderate demand. If you find that the rental market is robust and vacancies are minimal, then the answer is Yes. Otherwise, if the rental market shows signs of weakening or high vacancy rates, the answer is No.

The key to making a successful Section 8 investment in ZIP 69125 lies in ensuring that the FMR can support the necessary debt service, that the market rent is not significantly higher than the FMR, and that there is sufficient demand from renters. With an FMR of $1,050, landlords need to verify that this amount can indeed cover their expenses for a property priced at $194,639. Additionally, the moderate rental rate of 17.8% requires further investigation into the actual vacancy rates and market conditions to make a definitive 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.