Location: Cape Girardeau, MO | Metro: Cape Girardeau, MO-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
The potential risks for investing in Section 8 properties in ZIP code 63779, located in an unspecified area of Missouri, are significant. Tenant turnover poses a considerable challenge, especially when comparing the market rent, which is currently unavailable, to the $950 Fair Market Rent (FMR) for fiscal year 2024. This uncertainty can lead to financial instability for landlords, as they may struggle to maintain consistent rental income.
Vacancy exposure is another concern. The Days on Market (DOM) for properties in this area is also not available, which suggests that there might be difficulty in quickly filling vacancies. This delay can result in lost rental income, further impacting the financial health of the property.
Deferred maintenance is a risk factor that cannot be ignored. Without knowing the typical home values and median incomes in ZIP 63779, it's challenging to assess the ability of tenants to contribute to the upkeep of the property. Landlords must be prepared to cover any maintenance costs themselves, which can be substantial.
Despite these risks, the high renter density in the area, indicated by the unavailable percentage of renters, often translates into higher demand for housing vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants, even if they require government assistance.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.