Location: Perry County, MO | Metro: Cape Girardeau, MO-IL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $298,458 | 0.43% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in Section 8 properties in ZIP code 63732 are significant. Tenant turnover poses a notable challenge, with the market rent at $950 compared to the Federal Market Rent (FMR) of $810 for FY 2024. This discrepancy suggests that tenants may be inclined to leave once their vouchers expire, seeking higher rental subsidies elsewhere. Additionally, vacancy exposure is a concern due to the lack of data on days on market (DOM), indicating uncertainty around how quickly vacant units can be filled. The typical home value in this area is $250,703, while the median income stands at $76,250, which points to a substantial deferred maintenance risk. Landlords must be prepared to invest in property upkeep to meet Section 8 standards, as lower-income residents may not have the financial capacity to cover such costs.
However, these risks are offset by several favorable factors. The renter share in ZIP 63732 is 20.7%, which is relatively high. High renter density typically correlates with increased demand for housing assistance vouchers, providing a steady stream of tenants. Moreover, the local economy supports a consistent need for affordable housing, ensuring that there will likely be a pool of eligible voucher holders ready to occupy units.
A first-time Section 8 landlord in ZIP 63732 faces moderate risk. While challenges such as tenant turnover and maintenance costs exist, the high renter share and stable demand for subsidized housing mitigate these issues to some extent. Landlords should proceed with caution but remain optimistic about the long-term viability of their investments in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.