Section 8 Fair Market Rent (FMR) for ZIP 83286 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to invest in ZIP 83286 for Section 8 properties, follow this decision tree:

1) Does FMR $1190 (zip FY 2024) clear debt service on a property?

• No: If the Fair Market Rent (FMR) of $1190 does not cover the debt service of the property, investment in this area is not advisable. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. Without a clear margin over these expenses, there's little room for profit or unexpected costs.
• Yes: If the FMR can cover all debt service obligations, proceed to the next question.

2) Is market rent $1,344 (Census ACS) above, at, or below FMR?

• Above: The market rent at $1,344 exceeds the FMR of $1190, indicating that landlords could potentially earn higher rents outside of Section 8. This might suggest that focusing on non-Section 8 tenants could be more profitable, though it also means the demand for Section 8 housing might be lower.
• At: If market rents are exactly at the FMR, landlords would be able to charge the same amount for both market and Section 8 units, which can simplify operations but limits flexibility in pricing.
• Below: If market rents were below the FMR, it would indicate a strong preference for Section 8 units over market-rate rentals, increasing the demand for such properties. However, this scenario is not applicable given the data.

3) Are 16.3% renters + N/A-day DOM enough demand?

• It Depends: With 16.3% of the population renting, the demand for rental properties, including those participating in Section 8, is present but not overwhelming. The average days on market (DOM) is not specified, making it difficult to gauge how quickly properties are being rented. A low DOM suggests strong demand, while a high DOM indicates the opposite. Without specific DOM data, the decision hinges on other factors such as vacancy rates, competition, and the local economy's health.

In conclusion, the viability of purchasing a property in ZIP 83286 for Section 8 purposes largely depends on the property's debt service requirements relative to the FMR of $1190. Additionally, the fact that market rents are higher than the FMR suggests that landlords might find better returns by targeting the broader rental market rather than exclusively Section 8 tenants. Lastly, the percentage of renters alone does not provide a complete picture of demand; specific DOM data and an analysis of the local rental market conditions are essential for making a well-informed 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.