Section 8 Fair Market Rent (FMR) for ZIP 70341 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if a landlord should buy in ZIP code 70341 for Section 8 purposes, follow this decision tree:

1) Does FMR $1300 clear debt service on a property?

• Yes: If the Fair Market Rent (FMR) of $1300 per month can cover the mortgage and other expenses, then the property is financially viable under Section 8. This means that the rental income will meet the financial obligations of owning the property.
• No: If the FMR cannot cover the debt service, purchasing a property in this area for Section 8 would not be advisable. The landlord would be operating at a loss, which is unsustainable in the long term.
• It Depends: Without knowing the exact debt service amount, it's impossible to give a definitive answer. However, a general rule is that the FMR should exceed the debt service to ensure profitability.

2) Is market rent above, at, or below FMR?

• Above FMR: If the market rent exceeds $1300, landlords might consider whether they want to accept Section 8 tenants at a lower rate or focus on market-rate rentals. Accepting Section 8 tenants could mean foregoing higher market rents.
• At FMR: If the market rent is exactly $1300, then Section 8 tenants would pay the same rate as market-rate tenants. This scenario presents an equal opportunity for both types of tenants.
• Below FMR: If the market rent is less than $1300, landlords might prefer Section 8 tenants over market-rate ones, as they would receive a higher rent. This could be particularly beneficial in areas where vacancy rates are high and market rents are low.

3) Are 17.4% renters + N/A-day DOM enough demand?

• 17.4% Renters: This indicates that 17.4% of households in ZIP 70341 rent their homes. Whether this percentage is sufficient depends on the size of the landlord's portfolio and local competition. A larger share of renters generally suggests higher demand.
• N/A-Day DOM: The number of days on market (DOM) for rental properties is crucial. Lower DOM values indicate quicker leasing times, which can be beneficial for landlords. High DOM values suggest slower leasing and potentially lower occupancy rates.
• It Depends: The combination of the rental percentage and DOM needs to be analyzed together. If the DOM is low, even a modest rental percentage might be acceptable. Conversely, if DOM is high, the landlord may need a higher rental percentage to justify the investment.

In summary, for ZIP 70341, the viability of purchasing property for Section 8 tenants hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the balance between the percentage of renters and the DOM. These factors collectively determine the attractiveness of the area for Section 8 investments.

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.