Location: Ralls County, MO | Metro: Audrain County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 63352, located in Ralls County, Missouri, reveals a favorable environment for cash flow generation. The HUD Fair Market Rent (FMR) for the metro area, set at $900 for fiscal year 2026, significantly exceeds the current market rent of $630, based on Census ACS data. This means that voucher tenants will cashflow at FMR levels, providing a substantial buffer against any unexpected maintenance costs or vacancies.
To further understand the investment potential, we can look at the rent-to-price ratio derived from the median home value of $178,985. At the current market rent of $630, the annual rental income would be $7,560. Dividing this by the median home value yields a rent-to-price ratio of approximately 4.2%, which is relatively low compared to typical market standards. This suggests that the area is more oriented towards homeownership, but it also indicates that rental properties could be undervalued relative to their potential income.
The dynamics of days on market (DOM) and price-cut share are not applicable here due to insufficient data, but they typically play a crucial role in determining whether renting or buying is more advantageous. However, given the significant gap between the HUD FMR and the actual market rent, the focus should remain on the strong cash flow potential.
In conclusion, the strongest investor angle in ZIP 63352 is cash flow, thanks to the disparity between the HUD FMR and the local market rent. This allows landlords and small-portfolio investors to secure steady income from voucher tenants without the need for premium units, making it an attractive opportunity for those seeking reliable returns.
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.