Location: Pike County, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 63359 reveals a market that offers moderate potential for rental yields while exhibiting some stability concerns.
To begin with, the yield is moderately attractive. The Fair Market Rent (FMR) for ZIP 63359 in fiscal year 2024 is set at $900. This compares favorably against the market rent of $774, indicating a premium of $126 per unit above the average market rate. However, when considering the median home value of $329,836, the yield is not exceptionally high. For instance, if we assume a typical mortgage payment of around $1,500, the positive cash flow would be limited to the difference between the FMR and the mortgage payment, less maintenance and other costs.
Moving on to stability, the ZIP code shows mixed indicators. With only 17.6% of the population being renters, there is a relatively low demand for rental units, which could lead to higher vacancy rates and reduced stability. Furthermore, the lack of data on days on market (DOM) suggests that there might be inefficiencies in the local rental market, making it harder to predict how quickly properties can be leased out. On a more positive note, the median household income of $75,227 provides a reasonable assurance that tenants will be able to afford the rent, which helps mitigate some risks associated with rental payments.
In conclusion, ZIP 63359 does not fit neatly into either a high-yield/low-stability category or a steady-cashflow zone. The market presents a scenario where the yield is moderately good due to the FMR being above the market rent, but the stability is somewhat compromised by the low percentage of renters and the absence of DOM data. Investors should carefully weigh these factors before entering this market, ensuring they have a solid understanding of the local dynamics and the ability to manage potential fluctuations in occupancy and cash flow.
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.