Location: Sullivan County, MO | Metro: Sullivan County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The potential risks for landlords investing in ZIP code 63545 through the Section 8 program are significant and must be carefully considered. Firstly, tenant turnover can be a major issue. The market rent stands at $679, which is notably lower than the Fair Market Rent (FMR) of $890 for the fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants might seek higher-paying opportunities, leading to frequent turnover and increased administrative burdens for landlords.
Vacancy exposure is another concern. With no available data on days on market (DOM), it's challenging to predict how long a property might remain vacant between tenants. High vacancy rates can lead to financial strain, as landlords rely on steady rental income to cover mortgage payments, taxes, and maintenance costs.
Deferred maintenance is a critical risk factor, especially when considering the typical home value of $88,176 and the median income of $40,104. These figures indicate that many homeowners in the area might struggle to afford necessary repairs and upgrades, potentially leading to properties that require significant investments to meet Section 8 standards. Landlords will need to be prepared to spend considerable sums on maintaining their properties to avoid penalties and ensure compliance.
Despite these risks, the high renter share of 20.2% offers a silver lining. In areas with a large proportion of renters, there tends to be a higher demand for housing vouchers, which can stabilize occupancy and provide a reliable stream of rental income. The presence of a substantial number of voucher holders can help mitigate the risk of vacancies and ensure that the property remains occupied.
In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP code 63545 are moderate. While challenges such as tenant turnover, vacancy exposure, and deferred maintenance exist, the high renter share provides a measure of stability and demand that can offset some of these concerns.
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.