Section 8 Fair Market Rent (FMR) for ZIP 72075 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should invest in ZIP code 72075 for Section 8 properties, follow these steps:

Step 1: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $880. This figure must cover your debt service costs. If your debt service per unit is less than or equal to $880, proceed to Step 2. Otherwise, do not invest in this area as the FMR does not sufficiently cover your expenses.

Step 2: Determine if the market rent is above, at, or below the FMR of $880. Since the market rent data is currently unavailable, you will need to research local rental rates. If the market rent is significantly higher than $880, it indicates strong demand and potentially higher returns on investment once the voucher subsidy kicks in. If it is around $880 or lower, then it suggests that the market is closely aligned with or underserved by the FMR, which could still be viable but with lower margins.

Step 3: Evaluate the rental demand. In ZIP 72075, 100.0% of residents are renters, indicating a high concentration of potential tenants. However, the average days on the market (DOM) is also missing, which would help gauge how quickly properties can be leased. If the DOM is low, say under 30 days, this suggests strong demand and a quick turnaround for leasing. With 100.0% renters, even a moderate DOM could still indicate sufficient demand. If the DOM is high, it may suggest an oversupply of rental units or other factors affecting occupancy rates.

Decision Outcome:

• If your debt service is covered by the FMR ($880), the market rent is competitive or slightly above the FMR, and the DOM is low, then the answer is Yes. You should consider investing in ZIP 72075 for Section 8 properties.
• If any of the conditions are not met, such as the debt service exceeds $880, the market rent is significantly below the FMR, or the DOM is high, then the answer is No. It would not be advisable to invest in this area for Section 8 properties without further investigation into why these conditions exist.
• If the market rent is around $880 and the DOM is moderate, the answer is It Depends. You would need to conduct a deeper analysis of the local rental market, including vacancy rates, tenant demographics, and competition levels to make a fully informed decision.

Note: The lack of specific data points such as the exact market rent and DOM makes it challenging to provide a definitive recommendation. It is crucial to gather all necessary information before making an investment 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.