Section 8 Fair Market Rent (FMR) for ZIP 72555 - 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 72555 for Section 8 purposes, follow this decision tree:

• 1) Does the Fair Market Rent (FMR) of $890 cover your debt service on a property?
  • If the answer is yes, proceed to the next question.
  • If the answer is no, purchasing in this area for Section 8 would not be advisable due to the financial strain it would cause.
• 2) Is the market rent above, at, or below the FMR of $890?
  • If market rent is above $890, then it's a positive sign as properties could potentially command higher rents outside of Section 8.
  • If market rent is at or below $890, it means that Section 8 rates are competitive with the local market. This makes Section 8 a viable option for those looking to ensure steady rental income.
• 3) Are there enough renters and days on the market (DOM) to sustain demand?
  • The percentage of renters in ZIP 72555 is 19.6%, which indicates a moderate demand for rental properties. Additionally, the DOM figure is not specified, but typically, lower DOM suggests higher demand.
  • If the DOM is low, say under 30 days, this points towards a strong demand for rentals, making Section 8 a stable investment choice.
  • If the DOM is high, it implies a slower market where it might take longer to find tenants, even under the Section 8 program.

Decision Outcome:

• Yes: If the FMR covers your debt service, market rent is competitive or slightly above FMR, and the DOM is low, indicating a healthy rental market, then buying in ZIP 72555 for Section 8 is a sound decision.
• No: If the FMR does not cover your debt service, or if the market rent is significantly below FMR, and the DOM is high, then this area is not recommended for Section 8 investments.
• It Depends: If the FMR is barely covering debt service, or if the market rent is just above FMR, and the DOM is moderate, then the decision hinges on other factors such as property management costs, vacancy rates, and local economic trends.

Note: The specific details regarding market rent and DOM were not provided in the initial data, so these elements must be researched individually to make an informed 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.