Location: Shelby County, MO | Metro: Lewis County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 63440 reveals a significant opportunity for landlords and small-portfolio investors in the context of Section 8 housing. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,020, while the actual market rent based on Census ACS data stands at $954. This creates a gap of $66 in favor of the FMR, representing a 7% difference.
This gap is crucial because it means that landlords who accept Section 8 vouchers can charge a rent that is higher than the current market rate. This makes the ZIP code a prime location for a yield play. The higher guaranteed rental income from voucher holders compensates for the lower vacancy rates typically seen in areas with high demand for affordable housing.
The context of ZIP 63440 supports this analysis. With 19.2% of residents being renters, there is a notable segment of the population already living in rented properties. Additionally, the median home value of $262,537 indicates a relatively stable housing market. However, the median income of $60,217 suggests that many residents might struggle to afford market-rate rents without assistance.
Given that the FMR exceeds the market rent, landlords can benefit from the consistent payment structure of Section 8 vouchers, which are adjusted annually to reflect changes in the cost of living. This ensures a steady cash flow, even if the property is valued slightly above the typical market rate.
Moreover, accepting Section 8 vouchers can be a strategic move to fill units that might otherwise remain vacant due to the high cost of living relative to income levels. The $66 differential means that landlords can receive a rent that is closer to the FMR, thus maximizing their potential earnings while providing affordable housing options to those who need them.
In summary, the gap between the FMR and the market rent in ZIP 63440 presents a clear advantage for landlords who choose to participate in the Section 8 program. It allows them to achieve higher yields and ensure occupancy in a competitive rental market.
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.