Location: St. Francois County, MO | Metro: Iron County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 63654 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent based on recent data. The FMR for the metro area in fiscal year 2026 is set at $1,050, while the Census ACS indicates that the average market rent is $675. This creates a disparity of $375 per month, which translates to a 56.7% difference between what the government deems as fair and the current market conditions.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to their advantage. Voucher tenants, who are subsidized by the government, can effectively fill this gap, ensuring that properties are rented at or near the FMR. This makes the ZIP code a prime yield play, as it allows property owners to achieve higher rental incomes than what the open market offers.
In ZIP 63654, only 8.8% of residents are renters, indicating a primarily owner-occupied area. With a median home value of $164,031 and a median income of $36,607, the financial landscape suggests that many residents might struggle to afford higher rents without assistance. For landlords, accepting voucher tenants means they can command rents closer to the FMR, thereby increasing their monthly cash flow and overall investment yield.
However, it's important to note the implications of renting below the FMR. While the government aims to ensure affordable housing, landlords must be aware that voucher payments might not fully cover the FMR, leaving them to absorb some of the difference. In ZIP 63654, this could mean landlords receiving less than the $1,050 FMR but still significantly above the $675 market rent, making it a worthwhile venture despite the subsidy.
To summarize, the gap between the FMR and market rent in ZIP 63654 presents an opportunity for landlords to maximize their rental income through voucher programs. This is especially beneficial given the low percentage of renters and the economic context of the 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.