Section 8 Fair Market Rent (FMR) for ZIP 87933 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,600
5 Bedrooms	$1,856
6 Bedrooms	$2,079
7 Bedrooms	$2,245
8 Bedrooms	$2,357

To provide a detailed analysis for ZIP code 87933 regarding Section 8 investments, let's break down the decision-making process into key gating questions based on the available data.

Step 1: Debt Service Coverage Ratio (DSCR) with FMR

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,000. This figure represents the maximum amount that a Section 8 tenant can pay towards their rent. The first question you must ask yourself is whether this $1,000 can cover the debt service on a property in this ZIP code. For a property to be viable, the DSCR needs to be at least 1. If the cost of debt service exceeds $1,000, then the answer is no; the investment would not be sustainable under Section 8 guidelines.

Step 2: Market Rent vs. FMR

Next, compare the market rent in ZIP 87933 to the FMR. If the market rent is significantly higher than $1,000, landlords might find it challenging to attract tenants who qualify for Section 8, as the subsidy may not cover the full rent. Conversely, if market rents are around or below $1,000, the likelihood of finding suitable tenants increases, making the investment more feasible. Given the incomplete data, we cannot provide a precise comparison. However, if the market rent is at or slightly above the FMR, it depends on the specifics of the property and the landlord’s willingness to accept a lower-than-market rent.

Step 3: Tenant Demand and Days on Market (DOM)

Evaluate the rental demand in the area. If there is a high percentage of renters and a low days-on-market (DOM) rate, it indicates strong demand for rental properties. For instance, if the percentage of renters is over 50% and the DOM is less than 30 days, there is likely sufficient demand to support a Section 8 property. However, without exact figures, we can only suggest that these factors need to align favorably. If the demand is weak, even if the FMR clears the debt service, the investment remains risky due to potential vacancy issues.

The decision tree for investing in ZIP 87933 with a focus on Section 8 properties looks like this:

• If the $1,000 FMR does not cover the debt service, the answer is No.
• If the market rent is significantly above $1,000, the answer is No.
• If the rental demand is strong (high percentage of renters and low DOM), the answer is Yes.
• In cases where the market rent is close to the FMR and demand is moderate, the answer is It Depends. Landlords will need to assess the specifics of the property and their financial tolerance for accepting lower rent.

Note: The analysis assumes that other factors such as property condition, location, and local regulations are favorable. Always consult local housing authorities and real estate professionals before making any investment decisions.

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.