Location: Putnam County, MO | Metro: Putnam County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 63567 reveals a challenging landscape for Section 8 investments, primarily due to limited data points. For a two-bedroom unit, the Fair Market Rent (FMR) set by HUD for fiscal year 2026 is $900 per month. However, the median home value in the area is not available, making it difficult to calculate a precise cap rate. Additionally, the market rent for the area is also not available, further complicating the analysis.
To derive the implied gross yield, we must consider the annualized Section 8 rental income. At $900 per month, the annual rental income would be $10,800. Without a specific median home value, we cannot provide an exact cap rate; however, we can infer that the gross yield will be lower compared to traditional market rents due to the fixed nature of Section 8 rates. The lack of market rent data prevents us from making a direct comparison to non-Section 8 yields, but typically, market rents exceed FMRs, suggesting a higher potential gross yield outside of Section 8.
The renter density of 83.3% indicates a strong demand for rental properties in ZIP 63567. This high density could suggest a stable occupancy rate for Section 8 units, but without knowing the Days on Market (DOM), it's hard to gauge how quickly these units can be filled. A low DOM would imply strong demand and potentially quicker returns on investment, whereas a higher DOM might indicate slower turnover and thus less immediate cash flow.
In conclusion, while the annualized Section 8 income for a two-bedroom unit in ZIP 63567 is $10,800, the absence of key data such as median home values and market rents makes a definitive cap rate calculation impossible. Given the high renter density, Section 8 properties could maintain steady occupancy, but the gross yield is likely to be lower than that of market-rate rentals. Investors should proceed with caution and seek additional local market insights before making investment decisions in this area.
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.