Location: Scotland County, MO | Metro: Schuyler County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 63536 reveals a unique balance between yield potential and market stability, making it an intriguing area for real estate investment, particularly for Section 8 landlords and small-portfolio investors.
On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $890. However, the market rent for ZIP 63536 stands at $361, indicating a significant gap between the FMR and the actual rental rates. This suggests that while the market rent is lower, the potential for higher yields through Section 8 subsidies is substantial. The lack of a specific figure for home values further emphasizes the rental market's dominance over the purchase market in this area.
Moving to the stability axis, ZIP 63536 shows a 14.8% rate of renters, which is relatively low compared to typical rental-heavy areas. The absence of data regarding days on market (DOM) implies a potentially stable rental environment where properties are likely occupied for longer periods. Additionally, the median household income of $60,625 provides a moderate level of financial security for tenants, reducing the risk of default.
Given these figures, ZIP 63536 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle ground. The low market rent of $361 combined with the higher FMR of $890 creates an opportunity for significant yield increases when leveraging Section 8 programs. However, the lower percentage of renters and the moderate income level suggest a market that is somewhat stable but not necessarily bustling with high turnover or speculative flipping opportunities.
To summarize, ZIP 63536 offers a moderate level of stability coupled with above-average yield potential due to the disparity between market rents and the FMR. It is best suited for investors looking to capitalize on government rental assistance programs without the volatility associated with purely speculative markets.
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.