Section 8 Fair Market Rent (FMR) for ZIP 73147 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should buy in ZIP code 73147 for Section 8 purposes, follow these decision points:

• Does the Fair Market Rent (FMR) of $1080 cover the debt service on a property?
  • If the debt service on a property is less than $1080, then the answer is Yes. The FMR will cover your monthly mortgage payments and other fixed costs associated with owning the property.
  • If the debt service on a property exceeds $1080, then the answer is No. The FMR will not be sufficient to cover your monthly expenses, leading to financial losses.
• Is the market rent above, at, or below the FMR of $1080?
  • If the market rent is above $1080, then the answer is It Depends. You would need to assess whether the higher market rents justify the investment beyond just Section 8 tenants.
  • If the market rent equals the FMR of $1080, then the answer is Yes. This means that the FMR aligns perfectly with the market rate, making it a viable option for Section 8 investments.
  • If the market rent is below $1080, then the answer is No. The lower market rents indicate that even non-Section 8 tenants might not pay the FMR, reducing the attractiveness of the area for such investments.
• Are there enough renters and days on the market (DOM) to meet demand?
  • The percentage of renters and the DOM figures are currently unavailable. However, if you can obtain data showing that a significant portion of residents are renters and the DOM is low, indicating quick property turnover, then the answer is Yes. This suggests strong rental demand in the area.
  • If the percentage of renters is low and the DOM is high, then the answer is No. High DOM and low renter percentages point towards weak rental demand, which could make it difficult to find tenants, including those eligible for Section 8.
  • If the data shows moderate levels of both renters and DOM, then the answer is It Depends. You would need to consider additional factors such as the vacancy rates, the competition in the rental market, and the overall economic conditions of ZIP 73147.

Note: For a comprehensive analysis, specific data on market rents, the percentage of renters, and DOM days for ZIP 73147 is required. Without this information, the decision-making process is limited.

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.