Location: Cape Girardeau, MO | Metro: Cape Girardeau, MO-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 63747 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 63747 in fiscal year 2024 is set at $950. However, the current market rent data is unavailable, which complicates a direct comparison. Given the limited information, we can still provide insights into the implications of the FMR figure.
With an FMR of $950, landlords must consider whether this represents a yield opportunity or a potential financial challenge. If the FMR exceeds the market rent, it means that voucher tenants could offer higher returns than what the open market currently provides. This scenario would be particularly beneficial in a region where only 2.0% of the population are renters, indicating a low supply of rental properties relative to demand. In such a context, securing a tenant through the Section 8 program could stabilize cash flow and provide a steady income source.
Conversely, if the FMR is below the market rent, landlords might face the decision of accepting lower rents through the Section 8 program. This would translate into a financial burden, as the difference between the FMR and the market rate could be significant. For instance, if the market rent were $1,100, the gap would be $150, or approximately 15.8% below the market rate. Accepting Section 8 tenants under these conditions would mean foregoing the premium that the open market could potentially command.
The median income of $106,425 in ZIP 63747 suggests that residents have a relatively high earning capacity, which could support higher market rents. However, the absence of a median home value makes it difficult to fully assess the economic landscape. It is important for landlords to weigh the benefits of guaranteed rental income against the potential drawbacks of renting below market rates.
In conclusion, the FMR of $950 for ZIP 63747 in fiscal year 2024 presents a clear benchmark for landlords considering Section 8 tenants. Whether this represents a yield play or a cost consideration will depend on the actual market rent, which is currently unknown. Landlords should also take into account the local rental market dynamics and the overall economic situation when making their investment decisions.
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.