Section 8 Fair Market Rent (FMR) for ZIP 73851 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To decide whether you should buy in ZIP code 73851 for Section 8 investment, follow this decision tree based on the provided data.

Step 1: Does the Fair Market Rent (FMR) of $990 cover the debt service on a property in ZIP 73851?

• If the FMR of $990 does not cover the debt service, then the answer is No. Proceeding would result in financial losses.
• If the FMR of $990 does cover the debt service, move to Step 2.

Step 2: Is the market rent above, at, or below the FMR of $990?

• If market rent is below $990, then the answer is No. The lower market rent means that even if you could collect the FMR, you would be undercharging the market, potentially missing out on higher rents from non-Section 8 tenants.
• If market rent is equal to or above $990, move to Step 3.

Step 3: Are there enough potential renters and days on the market (DOM) to meet your demand criteria?

• If the percentage of renters is less than 7.5%, or the DOM is significantly higher than expected, the answer is No. There is insufficient demand for Section 8 properties in this area.
• If the percentage of renters is 7.5% or higher, and the DOM aligns with your expectations, then the answer is Yes. This indicates a sufficient number of potential tenants and reasonable vacancy periods.
• If the percentage of renters is close to but slightly below 7.5%, or the DOM is slightly higher than desired, the answer is It Depends. Consider other factors such as property management costs, local competition, and the overall economic stability of ZIP 73851 before making a final decision.

Note: Due to the lack of specific data regarding the current market rent and the exact percentage of renters and DOM, these values must be researched or obtained from reliable sources before proceeding with any investment 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.