Location: Montgomery County, MO | Metro: Callaway County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The classification of ZIP code 63384 hinges on the interplay between rental yields and market stability. With a Fair Market Rent (FMR) of $940 for the fiscal year 2024, compared to a market rent of $756, there is an opportunity for higher rental yields. However, the median home value stands at $169,614, indicating a moderate investment cost.
The stability axis is influenced by the percentage of renters, which is 15.8%, and the median household income, which is $78,281. The lack of data on days on market (DOM) suggests that either there isn't enough recent transactional data to make a determination, or the market is relatively stable without significant fluctuations.
The low percentage of renters points towards a less stable market, as it implies a smaller pool of potential tenants. This can lead to challenges in maintaining consistent occupancy rates, especially if the area has limited demand for rentals. The higher FMR compared to the market rent indicates that properties could potentially be rented out at above-market rates, leading to higher yields. However, this also means that the market might be sensitive to economic downturns, where fewer tenants can afford the higher rents.
The median home value is not exceptionally high, which makes it a viable option for small-portfolio investors looking to enter the market. However, the relatively lower income levels compared to the national average suggest that the area may have a smaller financial cushion against economic shocks, further impacting the stability of rental income.
In conclusion, ZIP 63384 presents characteristics of a medium-yield/medium-stability market. While the potential for higher rental yields exists due to the disparity between FMR and market rent, the relatively low percentage of renters and modest income levels temper expectations of long-term stability. Landlords and investors should carefully consider these factors before making investment decisions in this area.
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.