Section 8 Fair Market Rent (FMR) for ZIP 88042 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 88042 might raise several objections regarding the feasibility of investing in this area. Let's address these concerns with the available data.

• Will FMR $1,000 (metro FY 2026) cover the mortgage on a $225,416 home?: The Fair Market Rent (FMR) of $1,000 for ZIP 88042 suggests that it could indeed cover the mortgage on a $225,416 home. Assuming a typical mortgage rate of around 4%, the monthly payment on such a home would be approximately $1,074, which is close to the FMR but slightly exceeds it. This indicates that while the FMR is a good starting point, landlords might need to consider additional income sources or slightly higher rents to ensure profitability.
• Is there enough renter demand at 0.0%?: The data shows that rentals in ZIP 88042 are predominantly studio apartments, with typical monthly rents ranging from $200 to $299, including utilities. However, the 0.0% figure provided does not clearly indicate the percentage of rental demand relative to the total housing stock. To make an informed decision, it would be necessary to have more detailed data on the occupancy rates and the proportion of renters versus homeowners in the area. The current data suggests a low-cost rental market, but the depth of demand is unclear without further specifics.
• Will vouchers keep pace with N/A market rents?: The data does not provide a direct comparison between voucher amounts and market rents in ZIP 88042. However, given that the typical rent for studio apartments is significantly lower than the FMR, it is plausible that existing voucher programs could cover a substantial portion of the rent. Landlords should verify the current voucher amounts and their alignment with local rental costs to ensure they can participate effectively in the Section 8 program.

The available data provides some insights into the investment potential of ZIP 88042, particularly concerning the affordability of housing and the rental market. However, it does not fully address all the concerns raised by a skeptical investor. Additional research, especially on occupancy rates and the specifics of rental demand, would be beneficial before making any investment decisions.

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.