Section 8 Fair Market Rent (FMR) for ZIP 70772 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to invest in ZIP 70772 for Section 8 properties, landlords must evaluate several key factors based on the latest data.

1) Does the Fair Market Rent (FMR) of $1030 cover debt service?

• Yes: If the FMR of $1030 can clear the debt service on a property in ZIP 70772, then it's a viable option for Section 8 investment. This assumes that the property value and associated financing costs align with the rental income potential.
• No: If the FMR does not cover the debt service, purchasing a property in this area for Section 8 would be financially unwise. Landlords need to ensure that the rental income is sufficient to meet all financial obligations.

2) How does the market rent of $733 compare to the FMR?

• Above FMR: If the market rent exceeds $1030, landlords might consider traditional market rentals over Section 8, as they could potentially earn higher returns without the administrative complexities of participating in the program.
• At FMR: If the market rent is around $1030, ZIP 70772 could be a balanced market where Section 8 participation is reasonable, given the FMR covers the debt service.
• Below FMR: With a market rent of $733, which is below the FMR, landlords could leverage the difference to cover maintenance and other costs associated with property ownership, making Section 8 a suitable choice if the first condition is met.

3) Is there enough demand with 8.5% of renters and N/A days DOM?

• It Depends: The percentage of renters at 8.5% suggests a moderate level of demand. However, without specific Days on Market (DOM) data, it's challenging to assess how quickly properties rent out. If DOM is low, indicating fast rental turnover, this supports a positive outlook on demand. Conversely, high DOM values would suggest slower rental activity, which could affect cash flow and investor returns.

To conclude, a landlord should proceed with a Section 8 purchase in ZIP 70772 if the FMR of $1030 clears debt service and the market rent is either at or below the FMR. The demand analysis hinges on the DOM figure, which needs to be assessed for a complete picture. Without concrete DOM data, the final decision on demand remains uncertain.

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.