Section 8 Fair Market Rent (FMR) for ZIP 83715 - 2027

FY 2027 Fair Market Rent Rates

To determine if a landlord should invest in ZIP 83715 for Section 8 properties, follow these steps:

• Step 1: Debt Service Coverage Ratio (DSCR)
  • If the Fair Market Rent (FMR) of $1430 does not cover the debt service on a property in ZIP 83715, the answer is No. The landlord will not be able to meet financial obligations consistently.
  • If the FMR of $1430 covers the debt service adequately, proceed to Step 2.
• Step 2: Market Rent Comparison
  • If the market rent is above $1430, the answer is No. Landlords would prefer higher returns from market rents rather than relying on Section 8 rates.
  • If the market rent is equal to or slightly below $1430, the answer is It Depends. Consider other factors such as demand and vacancy rates before making a decision.
• Step 3: Demand Analysis
  • If the percentage of renters and days on market (DOM) indicate sufficient demand, the answer is Yes. A healthy rental market supports the viability of Section 8 investments.
  • If the demand is insufficient, the answer is No. There will not be enough tenants to fill vacancies and maintain steady income.

Note: Due to the lack of specific data for ZIP 83715, such as average market rent and exact percentages of renters, some steps cannot be quantified. However, the principle remains: the FMR must cover expenses, market rent should not significantly exceed FMR, and there needs to be enough demand to ensure occupancy.

Data Sources: FMR data from HUD (2027).

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.