Location: Macon County, MO | Metro: Macon County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $890 for ZIP 63539 can cover the mortgage on a typical home. According to recent data, the median home value in ZIP 63539 is $231,563. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 5%, a homebuyer could expect monthly payments around $1,200, excluding taxes and insurance. Thus, the FMR alone does not cover the mortgage, indicating that landlords should consider other revenue streams or cost-saving measures.
The investor might also doubt the strength of the rental market, given that only 11.2% of the area is occupied by renters. This percentage is relatively low compared to urban centers but still represents a significant portion of the housing market. The low vacancy rate of 0.0% suggests strong demand among the limited rental pool, implying that the market is tight. However, the small number of rental units means that competition for tenants could be fierce, which might impact rental pricing strategies.
Another concern is whether housing vouchers will keep pace with market rents. Unfortunately, the data does not provide specific figures on voucher amounts or their growth trends in ZIP 63539. It's crucial for landlords to monitor local housing authority announcements and adjust rental prices accordingly to ensure they remain competitive yet sustainable.
In summary, while the FMR of $890 does not fully cover the mortgage on a typical home valued at $231,563, the rental market shows signs of robust demand despite its small size. Voucher trends remain uncertain, requiring landlords to stay vigilant in adjusting their rental strategies.
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.