Section 8 Fair Market Rent (FMR) for ZIP 74871 - 2027

Investment Score for ZIP 74871

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking into ZIP 74871 might have several concerns regarding the feasibility of investing in rental properties within this area. Let's address these concerns directly with the available data.

• Will FMR $940 (metro FY 2026) cover the mortgage on a $213,406 home?: The Fair Market Rent (FMR) of $940 for ZIP 74871 is projected to be sufficient for covering a mortgage payment on a home valued at $213,406. However, the exact amount of monthly mortgage payments depends on factors such as interest rates, loan terms, and down payment size. Assuming a typical 30-year fixed-rate mortgage with a 4% interest rate and a 20% down payment, the monthly mortgage payment would be approximately $820. This figure is comfortably below the FMR, indicating that a landlord could potentially cover the mortgage and still have room for maintenance costs and other expenses.
• Is there enough renter demand at 15.6%?: The percentage of renter-occupied housing units in ZIP 74871 stands at 15.6%. While this figure might seem low compared to urban areas, it is important to note that rental demand can vary widely based on local economic conditions, job availability, and demographic trends. The 15.6% indicates that there is a significant owner-occupied market, but it does not necessarily mean that there isn't enough rental demand to support investments. Landlords should conduct further research into local vacancy rates and tenant turnover to gauge the actual demand for rental properties.
• Will vouchers keep pace with $674 market rents?: The average market rent of $674 in ZIP 74871 is notably lower than the FMR of $940. This suggests that tenants using housing vouchers might find it easier to afford the average rent. However, whether voucher amounts will keep pace with market rents is another matter. Voucher programs are typically adjusted annually based on HUD guidelines, which consider the FMR. Given the gap between the FMR and the average market rent, landlords can expect that most voucher holders will be able to cover the rent without significant adjustments needed. Yet, the specific amount of voucher assistance is subject to change and should be monitored closely to ensure continued profitability.

The data provided offers insights into the potential challenges and opportunities for landlords and small-portfolio investors in ZIP 74871. It shows that while the renter demand might be modest, the financials are favorable for covering mortgage payments and maintaining properties. Additionally, the lower market rents compared to the FMR indicate a good match for voucher recipients, reducing the risk of non-payment. For a comprehensive investment strategy, investors should also consider the broader economic context and trends in the area.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.