Location: Carter County, MO | Metro: Butler County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The median income in ZIP code 63937 stands at $61,614, which places significant constraints on what households can afford in terms of rent. The market rate for rent, according to the Census ACS, is $666 per month. This means that even at the median income level, a household would be spending a substantial portion of their earnings on housing costs. To put this into perspective, the federal poverty level guidelines suggest that no more than 30% of a household’s income should go towards housing. At $666 per month, this equates to approximately $7,992 annually, or roughly 13% of the median income.
However, when comparing the market rate to the Fair Market Rent (FMR) standard set for ZIP 63937 at $890 (metro FY 2026), it becomes evident that there is a considerable affordability gap. The FMR is significantly higher than the current market rate, indicating that many rental units may not be fully subsidized by the voucher program. For a landlord, this means that accepting a voucher tenant might not cover the full cost of renting a property at the FMR rate.
In ZIP 63937, 35.5% of the 2,643 residents are renters. This translates to roughly 937 renter households. Given the disparity between the median income and the FMR, landlords face stiff competition in attracting tenants who can pay the full market rate without relying on subsidies. Landlords must consider both the number of potential tenants and their ability to meet the rent requirements.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While vouchers can provide a steady stream of rental income, they may not cover the full cost of maintaining properties at the FMR level. On the other hand, cash-paying tenants offer the possibility of receiving the full market rate but come with the challenge of finding individuals or families capable of affording these rates. Landlords should weigh the benefits of guaranteed income from vouchers against the potential for higher rents from cash-paying tenants, taking into account the local economic conditions and the overall demand for rental housing.
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.