Location: Callaway County, MO | Metro: Callaway County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The rent math in ZIP 63388 does not work favorably for landlords. The Fair Market Rent (FMR) set at $890 per month for the fiscal year 2024, as determined by HUD, is the benchmark for rental income. However, the lack of data on market rent suggests that actual rental rates may be lower, potentially below the FMR threshold, which could reduce profitability for landlords.
Acquisition in this area is moderately affordable. With a median home value of $263,674, purchasing a property is within reach for many investors. Unfortunately, the absence of data on Days on Market (DOM) and the percentage of homes sold with price cuts makes it difficult to assess how quickly properties can be acquired and at what discount. This uncertainty should be considered when evaluating the cost-effectiveness of buying into this ZIP code.
Tenant demand is limited in ZIP 63388. The total population stands at 685, with only 7.4% being renters. This means there are approximately 51 potential tenants, which is a small pool and could lead to challenges in finding and retaining tenants. Given the low number of renters, competition among landlords could be fierce, further complicating efforts to fill vacancies.
Based on the analysis, ZIP 63388 presents a challenging investment landscape for landlords and small-portfolio investors. The uncertain market rent, coupled with limited tenant demand, suggests that achieving a positive cash flow might be difficult. While the median home value indicates that acquisition costs are manageable, the scarcity of available renters and the potential for reduced rental rates below the FMR of $890 per month make this area less attractive for real estate investments focused on rental income. Investors should proceed with caution and consider diversifying their portfolios beyond this ZIP code to mitigate risk.
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.