Location: Dunklin 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)
The Section 8 thesis for ZIP code 63933 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $910, while the current market rent, according to Census ACS data, stands at $644. This represents a gap of $266, or approximately 41%.
Given that the FMR exceeds the market rent, properties in this ZIP code present an attractive opportunity for landlords and small-portfolio investors who can leverage the housing voucher program to achieve higher yields. The government's commitment to pay up to $910 per month ensures a stable and predictable cash flow for landlords, even when market conditions fluctuate.
The ZIP code 63933 has 24.8% of its population as renters, indicating a decent demand for rental properties. Additionally, the median home value in the area is $93,964, which suggests that homeownership is relatively affordable, but the median income of $55,582 may limit some residents' ability to afford market-rate rents without assistance.
Voucher tenants provide a reliable source of income, often leading to lower vacancy rates and reduced turnover costs. However, it's important to note that participating in the Section 8 program requires compliance with certain regulations and standards, including regular inspections and maintenance to ensure the property meets health and safety criteria.
In conclusion, the disparity between the FMR and the market rent in ZIP 63933 offers a compelling investment strategy for those willing to engage with the Section 8 housing voucher program. This gap allows landlords to potentially earn a higher return on their investment compared to the open-market rates, making it a strategic choice for maximizing yield in a competitive rental environment.
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.