Location: Washington County, MO | Metro: St. Francois County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 63648 for Section 8 investment, follow this decision tree based on the provided data.
1) Does FMR $1,050 (metro FY 2026) clear debt service on a $187,182 property?
Yes: The Fair Market Rent (FMR) of $1,050 can cover the debt service for a property priced at $187,182. This means that the rental income is sufficient to meet mortgage payments and other expenses associated with owning the property.
No: If the FMR does not cover the debt service, purchasing a property in ZIP 63648 for Section 8 would not be financially viable. Ensure that the FMR is high enough to support the financial obligations of the property.
It Depends: This scenario is less likely given the specific figures. However, if there are additional factors such as property taxes, insurance, or maintenance costs that affect the overall debt service, they must be considered to make an accurate assessment.
2) Is market rent N/A (N/A) above, at, or below FMR?
Above FMR: If the market rent is higher than the FMR, this indicates a strong local rental market where landlords could potentially charge more than the government-subsidized rate. This makes ZIP 63648 a favorable location for both Section 8 and non-Section 8 investments.
At FMR: If the market rent aligns with the FMR, then the rental income will exactly match the subsidy, making it a stable but less lucrative investment compared to areas where market rents exceed the FMR.
Below FMR: If the market rent is lower than the FMR, this suggests that the government-subsidized rate may be higher than what the market can bear. Landlords might struggle to find tenants willing to pay the FMR, which could lead to vacancies.
3) Are 17.6% renters + N/A-day DOM enough demand?
Yes: With 17.6% of the population being renters, there is a decent level of demand. If the days on market (DOM) is low, this indicates that properties are selling quickly, which is positive for investment. A low DOM also suggests a competitive rental market, making it easier to fill units.
No: If the DOM is high, it implies a slow-moving market where properties take longer to sell or rent out. High DOM coupled with a low percentage of renters (17.6%) could mean insufficient demand for your Section 8 investment.
It Depends: If the DOM is moderate and the percentage of renters is 17.6%, consider other factors such as vacancy rates, average rental duration, and the number of Section 8 vouchers available in the area. These factors will provide a clearer picture of the demand for rental properties in ZIP 63648.
Based on these criteria, landlords can make informed decisions about whether ZIP 63648 is a suitable location for Section 8 investment.
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.