Location: Pemiscot County, MO | Metro: Dunklin County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 63855 for Section 8 properties, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $890 cover the debt service on a property valued at $86,373?
If the debt service is less than $890 per month, then the answer is Yes. The FMR can support the mortgage payments, making it a viable option.
If the debt service is greater than $890 per month, then the answer is No. The FMR would not be sufficient to cover the monthly mortgage payments, making investment risky.
Step 2: Compare the market rent of $345 (as reported by the Census ACS) to the FMR of $890.
If the market rent is below the FMR, then the answer is Yes. This indicates that there is potential to receive higher rents through Section 8, which could provide better returns.
If the market rent equals the FMR, then the answer is It Depends. You will need to assess other factors such as property management costs and vacancy rates.
If the market rent is above the FMR, then the answer is No. Landlords might struggle to find tenants willing to pay the lower Section 8 rate, leading to potential vacancies.
Step 3: Evaluate if the demand is strong enough. In ZIP 63855, 17.7% of residents are renters, but the average days on the market (DOM) is not available.
If you can secure a steady stream of rental applications, then the answer is Yes. The percentage of renters suggests a moderate demand for housing.
If you cannot predict a stable number of applicants due to lack of DOM data, then the answer is It Depends. Without knowing how long properties typically stay on the market, it's difficult to gauge the strength of the rental market.
In summary, investing in ZIP 63855 for Section 8 properties hinges on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the assurance of a consistent rental demand. Given the current data, the market rent being significantly below the FMR is a positive indicator, but the lack of DOM data introduces uncertainty into the equation.
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.