Location: Scott 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 | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,060 | $116,768 | 0.91% | C |
| 3BR | $1,280 | $179,069 | 0.71% | D |
| 4BR | $1,500 | $209,407 | 0.72% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 63780, encompassing Scott City, MO, and the broader Scott County, MO metro area, reveals several key points regarding the viability of Section 8 real estate investments.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for FY 2024 is set at $950, while the Census ACS reports the market rent at $938. This indicates that landlords can expect to receive slightly above the market average through Section 8, making the rent math favorable.
Regarding the affordability of property acquisition, the median home value stands at $174,202. However, due to the lack of specific data on days on market (DOM) and the percentage of homes needing price cuts, it's challenging to provide a definitive assessment on how competitive the buying process might be. Nonetheless, the median home value suggests that properties are relatively inexpensive, which could be advantageous for investors looking to enter the market with limited capital.
Tenant demand is another critical factor. With a total population of 6,243, and 21.6% of residents being renters, there is a moderate level of potential tenants available. This percentage translates to approximately 1,345 individuals who might be interested in rental housing, including those eligible for Section 8 assistance.
Verdict: The rent math in ZIP 63780 works in favor of landlords participating in the Section 8 program, given the slightly higher FMR compared to market rent. Acquisition costs are reasonable, though the absence of DOM and price-cut data means caution should be exercised when purchasing properties. Tenant demand is present but moderate, indicating that while opportunities exist, competition for Section 8 vouchers may be stiff relative to the number of potential renters. Overall, ZIP 63780 presents a balanced investment opportunity for those willing to navigate the local real estate dynamics carefully.
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.