Section 8 Fair Market Rent (FMR) for ZIP 74567 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 74567 for Section 8 investment, follow this decision tree based on the provided data:

1. Does the Fair Market Rent (FMR) of $1,020 cover the debt service on a property?

• No: If the FMR of $1,020 does not cover the debt service, purchasing a property in ZIP 74567 for Section 8 is not advisable. Debt service must be covered by rental income to ensure financial viability.
• Yes: Proceed to the next question.

2. How does the market rent compare to the FMR?

• Market Rent Above FMR: If the market rent is higher than the FMR of $1,020, landlords may face challenges attracting Section 8 tenants, who can only pay up to the FMR. This scenario makes it difficult to fill vacancies with Section 8 tenants.
• Market Rent At FMR: When market rent matches the FMR, it's an ideal situation for Section 8 investments. Tenants can afford the rent without financial strain, ensuring steady occupancy.
• Market Rent Below FMR: If the market rent is lower than the FMR, there might be an opportunity to attract both market-rate and Section 8 tenants. However, this also indicates that the area may not generate high rental yields beyond Section 8 limits.

3. Is the demand sufficient given the 12.1% of renters and N/A-day Days on Market (DOM)?

• It Depends: With 12.1% of the population being renters, the demand for rental properties is present but limited. The exact number of days on market (DOM) is needed to assess how quickly properties are rented out. A low DOM suggests strong demand, while a high DOM indicates weaker demand.

In conclusion, buying in ZIP 74567 for Section 8 investment hinges on whether the FMR of $1,020 sufficiently covers your debt service and how the local market rent compares to this figure. Additionally, the demand needs to be evaluated based on the percentage of renters and the DOM. Without the precise DOM figure, a final recommendation cannot be made definitively.

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.