Location: Stoddard County, MO | Metro: Scott County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 63774 reveals a critical gap between the Fair Market Rent (FMR) set by HUD at $970 and the actual market rent of $890, based on Census ACS data. This discrepancy amounts to $80, or approximately 8.25%, favoring the FMR.
This gap makes voucher tenants a compelling yield play for landlords and small-portfolio investors. With 80.0% of residents being renters and a median household income of $48,558, the demand for affordable housing is high. The FMR exceeds the current market rent, ensuring that landlords receive a higher subsidy amount from the government, thus increasing their net yield.
The economic context of ZIP 63774 further supports this strategy. Given the lack of data on median home values, it suggests that homeownership is not a prevalent option for many residents. Therefore, the reliance on rental properties, especially those supported by Section 8 vouchers, becomes crucial.
In summary, the FMR of $970 provides a buffer above the market rent of $890, making voucher tenants an attractive investment opportunity. Landlords can expect to see a positive cash flow due to the higher subsidy payments, which aligns well with the local economic conditions where a significant portion of the population depends on rentals.
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.