Section 8 Fair Market Rent (FMR) for ZIP 73123 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should invest in ZIP 73123 (Unknown, OK) for Section 8 properties, follow this decision tree based on the provided data:

Step 1: Debt Service Coverage Ratio (DSCR)

• If the Fair Market Rent (FMR) of $1080 for ZIP 73123 in fiscal year 2024 can cover your debt service on a property, proceed to Step 2.
• If the FMR cannot cover the debt service, do not invest in this area for Section 8 purposes.

Step 2: Market Rent Comparison

• If the market rent in ZIP 73123 is above $1080, then the area is less attractive for Section 8 properties as they might not be competitive compared to market-rate rentals.
• If the market rent is equal to or below $1080, proceed to Step 3 because Section 8 tenants will pay a fair amount relative to what the market demands.

Step 3: Demand Analysis

• If the percentage of renters in ZIP 73123 combined with the days on market (DOM) indicate sufficient demand, then investing in Section 8 properties is viable.
• If there is insufficient demand, as indicated by low percentages of renters or high DOM values, then investing in this ZIP code for Section 8 purposes would not be recommended.

The key to making a decision is understanding how the FMR compares to your debt service requirements and whether the local rental market supports Section 8 rates. Additionally, ensuring there's enough demand from potential tenants is crucial. Without specific data on market rents, percentage of renters, and DOM, the final decision depends on these factors being favorable.

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.