Location: Cape Girardeau, MO | Metro: Cape Girardeau, MO-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 62969 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $930 for ZIP 62969 in fiscal year 2024 be sufficient to cover the mortgage on a property?
The data provided does not include the average home price or typical mortgage costs for ZIP 62969, making it impossible to definitively answer this question. However, an investor can calculate the potential mortgage coverage by comparing the FMR against the monthly mortgage payment of their specific property. This calculation should also factor in other expenses such as maintenance, insurance, and property taxes.
Objection 2: Is there enough renter demand at 12.7% occupancy rate?
The occupancy rate of 12.7% suggests that there is a relatively low demand for rental properties in ZIP 62969. This figure could indicate that the area has a surplus of rental units or that the local economy is not robust enough to support high rental demand. Investors must consider this rate alongside broader economic indicators and trends in the area to gauge future demand accurately.
Objection 3: Will vouchers keep pace with the market rents in ZIP 62969?
The data does not specify the current voucher amounts or the historical trend of how well they've kept up with market rents in ZIP 62969. The U.S. Department of Housing and Urban Development (HUD) periodically adjusts voucher amounts based on changes in the local housing market. For an accurate assessment, an investor should compare recent voucher adjustments with the FMR and any available data on rent increases in the area.
In conclusion, while the FMR of $930 offers a baseline for rental income, the lack of specific data on home prices and typical mortgage costs makes it difficult to assess whether this amount will sufficiently cover mortgage payments. The occupancy rate of 12.7% indicates low demand, which is a concern but requires further investigation into local economic conditions. Lastly, the ability of vouchers to keep pace with market rents is uncertain without additional information on past and projected adjustments.
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.