Section 8 Fair Market Rent (FMR) for ZIP 72644 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor analyzing ZIP code 72644 might raise several valid concerns regarding the feasibility of investing in rental properties here. Let's address these objections head-on using the available data.

• Will FMR $970 (metro FY 2026) cover the mortgage on a $186,179 home? The Fair Market Rent (FMR) of $970 per month for ZIP 72644 is a critical figure for determining if rental income can sustain a property. To cover a mortgage, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $186,179 home would be approximately $1,000. This means that the FMR of $970 alone would not fully cover the mortgage. However, it's important to note that FMR represents the median rent, and higher-end rentals could command a premium above this figure, potentially covering the mortgage and providing a profit margin.

• Is there enough renter demand at 10.1%? With only 10.1% of the housing units classified as renter-occupied, an investor might question whether there is sufficient demand for rental properties. While this percentage seems low, it's essential to understand that it reflects the current occupancy rate, which does not necessarily indicate future demand. Factors such as population growth, job opportunities, and economic conditions can drive changes in rental demand. Furthermore, the data does not provide insight into the number of renters who are currently living with family or friends but might seek independent housing in the future, nor does it account for potential newcomers to the area.

• Will vouchers keep pace with $635 market rents? The voucher amount is crucial for understanding how many renters can afford market rates. If the voucher amount is below $635, landlords may face challenges in renting out their properties to voucher holders. However, the data provided does not specify the exact amount of the voucher. Typically, voucher amounts are adjusted annually based on HUD guidelines to reflect changes in the cost of living and housing prices. It's advisable to consult the latest HUD reports for ZIP 72644 to get an accurate picture of how voucher amounts compare to market rents. Without this information, it's difficult to definitively state whether vouchers will keep pace with the $635 market rent.

In summary, while the FMR of $970 suggests that rental income alone may not fully cover a mortgage payment on a $186,179 home, there are opportunities for higher rents. The 10.1% renter-occupied rate indicates a relatively low current demand, but future trends could change this. Lastly, the relationship between voucher amounts and market rents remains uncertain without specific data on the former.

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.