Section 8 Fair Market Rent (FMR) for ZIP 89821 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking into ZIP code 89821 might raise several concerns regarding the viability of renting properties under the Section 8 program. Let's address these objections directly with available data.

• Will FMR $1,410 (metro FY 2026) cover the mortgage on a home? The Fair Market Rent (FMR) for ZIP 89821 is set at $1,410 for fiscal year 2026. However, without specific median home price data for the area, it's challenging to determine if this amount will sufficiently cover a mortgage payment. It's important to note that the FMR is designed to reflect the average rental cost in the area, not necessarily the mortgage burden. Landlords should calculate their expected mortgage payments based on current interest rates and property values in the region to ensure that the FMR can cover these costs adequately.
• Is there enough renter demand at 6.4%? The 6.4% participation rate in the Section 8 Housing Choice Voucher program indicates the percentage of renters in ZIP 89821 who receive housing assistance. This figure suggests a moderate level of demand. However, the actual number of participants and the dynamics of the local rental market are critical factors. While 6.4% might seem low, it could still represent a significant portion of the rental market, especially if the total number of renters is high. To better assess demand, consider analyzing the waiting list lengths and the turnover rate of vouchers in the area. These metrics provide insight into the competition for vouchers and the willingness of tenants to move.
• Will vouchers keep pace with market rents? The FMR of $1,410 is the benchmark against which voucher amounts are adjusted. If the local market rents in ZIP 89821 rise above this figure, landlords might face challenges in covering their expenses. The data does not provide a direct comparison between the FMR and current market rents, so it's essential to monitor local trends. If market rents are consistently below the FMR, landlords can expect the voucher amounts to generally align with their rental charges. Conversely, if market rents exceed the FMR, landlords may need to adjust their expectations or seek additional sources of income to compensate for any shortfall.

The data provides a snapshot but does not fully answer every concern. For instance, while we know the FMR, we lack specific information on median home prices and current market rents to make a definitive statement. Investors must conduct further research and consult local real estate professionals to gain a comprehensive understanding of the financial landscape in ZIP 89821.

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.