Section 8 Fair Market Rent (FMR) for ZIP 72059 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 72059 presents several challenges for potential Section 8 landlords. First, tenant turnover can be problematic due to the disparity between market rent and the Fair Market Rent (FMR) set at $880 for FY 2026. This discrepancy suggests that tenants might struggle to afford increases beyond the FMR, leading to higher turnover rates.

Vacancy exposure is another significant risk factor. With no data available on the days on market (DOM), it's unclear how long properties might remain vacant between tenancies. This uncertainty can lead to financial strain, as vacancies mean lost rental income.

The deferred maintenance exposure is also a concern. Without specific figures on the typical home value and median income in ZIP 72059, it's difficult to assess the financial capacity of landlords to maintain their properties adequately. Poor maintenance can result in costly repairs and affect property values, which is especially critical for investors relying on steady cash flows.

However, these risks must be weighed against the high concentration of renters in the area, indicated by the N/A% renter share. High renter density typically translates into greater demand for housing vouchers, which can stabilize occupancy rates and provide a reliable source of income.

In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 72059 suggests a moderate risk for a first-time Section 8 landlord. The potential for stable occupancy due to high voucher demand balances out some of the inherent risks associated with the program.

Data Sources: FMR data from HUD (2027).

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.