Section 8 Fair Market Rent (FMR) for ZIP 83127 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if a landlord should invest in ZIP code 83127 for Section 8 properties, follow this decision tree based on the provided data.

• Does the Fair Market Rent (FMR) of $1,350 for the metro area in fiscal year 2026 cover the debt service on a property?
  • If the answer is yes, proceed to the next question.
  • If the answer is no, then the investment is not advisable because the rental income will not sufficiently cover the mortgage payments and other expenses associated with the property.
• Is the market rent of $1,595 (based on Census ACS data) above, at, or below the FMR?
  • If the market rent is above the FMR, this indicates that there is potential for higher rents outside of Section 8, which could be beneficial for landlords looking to diversify their tenant base.
  • If the market rent is at or below the FMR, it suggests that Section 8 rents align closely with the overall market, making it a viable option for those who wish to participate in the program.
• Are the 13.8% of renters combined with the number of days on the market (DOM) sufficient to meet demand?
  • If the DOM is low and there is a high percentage of renters, this signals strong demand for rental properties in the area, which is favorable for landlords.
  • If the DOM is high, despite the 13.8% of renters, it might indicate challenges in finding tenants quickly, even though the rental population is substantial.

The final decision hinges on whether the FMR can cover debt service and how the market rent compares to the FMR. If market rent is significantly higher, it may be worth considering non-Section 8 tenants. The percentage of renters and DOM provide insights into the local rental market's health and the speed at which properties can be leased.

A clear "yes" would be if the FMR covers debt service, market rent is above FMR, and there is a healthy balance of renters and quick leasing times. A "no" would apply if any of these conditions are not met, particularly if the FMR does not cover debt service. An "it depends" scenario arises when some criteria are met but others are not, requiring a closer look at individual circumstances and potential risks.

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.