Location: Cape Girardeau, MO | Metro: Cape Girardeau, MO-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 63750 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, which impacts the viability of Section 8 properties for landlords and small-portfolio investors. The FMR for ZIP 63750 in fiscal year 2024 is set at $830. However, the market rent is listed as N/A, indicating a lack of recent data to compare against the FMR.
Given that the FMR is $830, it's essential to understand how this figure compares to the local rental market. While we don't have an exact market rent figure, the absence of this data suggests that the FMR might be higher than what the market currently demands. This would mean that the gap is not in favor of landlords who rely on Section 8 vouchers.
In the context of ZIP 63750, where only 0.0% of residents are renters and there is no available median home value, the focus shifts to the median income of $120,773. This high median income implies a strong preference for homeownership over renting, making the rental market less competitive and potentially leading to lower market rents than the FMR.
If the FMR were indeed higher than the market rent, landlords accepting Section 8 tenants would be guaranteed a certain level of income, which could be seen as a yield play. The stability provided by government-backed vouchers ensures consistent cash flow, which is particularly valuable in a low-renter environment like ZIP 63750. However, if the market rent is lower than the FMR, landlords must consider the cost of housing voucher tenants below open-market rates. This scenario could result in missed opportunities for higher rental income, although the security of having a tenant covered by a voucher can offset some of these risks.
To conclude, the key factor in deciding whether to invest in Section 8 properties within ZIP 63750 is understanding the dynamics between the FMR and the actual market rent. With a median income of $120,773, the decision should weigh the benefits of stable, guaranteed income against the potential for higher yields in a more active rental market.
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.