Section 8 Fair Market Rent (FMR) for ZIP 72623 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$750
1 Bedroom	$760
2 Bedrooms	$1,000
3 Bedrooms	$1,270
4 Bedrooms	$1,310
5 Bedrooms	$1,520
6 Bedrooms	$1,702
7 Bedrooms	$1,838
8 Bedrooms	$1,930

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the analysis for ZIP Code 72623 focuses on the disparity between the Fair Market Rent (FMR) set at $960 for the fiscal year 2026 and the current market rent which is not readily available. To fill this gap, we can refer to recent listings where the typical monthly rent for properties in ZIP 72623, especially for 3+ bedroom units, is below $200 per month including utilities. This suggests a significant discrepancy, although exact figures are not provided, indicating that the FMR is likely substantially higher than the actual market rent.

The gap between FMR and market rent in ZIP 72623 is a critical factor for landlords and small-portfolio investors. Given that the FMR is $960, while the market rent is notably lower, it becomes evident that voucher tenants can be a yield play. Voucher tenants provide a guaranteed income stream at a rate that is above the open-market rent, thus increasing the potential yield for the property owner.

The median household income in ZIP 72623 is $46,354, and only 10.3% of residents are renters. This demographic context highlights the importance of understanding the local rental market dynamics. With a high FMR compared to the market rent, landlords can benefit from accepting housing vouchers, as they receive payments closer to the FMR, which exceeds the typical rental rates in the area. However, there is also a downside to consider: accepting voucher tenants may mean operating at a rate below what could be achieved in an open-market scenario, thereby reducing potential profits if market rents were to rise.

To summarize, the analysis for ZIP 72623 indicates that the FMR of $960 is likely above the current market rent, making it a favorable situation for landlords who accept housing vouchers. This strategy can enhance yields given the local economic conditions and the relatively low proportion of renters in the area. However, landlords must weigh the benefits against the potential costs of not capturing higher market rents should they become available.

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.