Location: Ripley County, MO | Metro: Oregon County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 63942 provides insight into the potential returns for landlords and small-portfolio investors involved with Section 8 properties. Given the annualized Fair Market Rent (FMR) for a two-bedroom apartment at $920 for fiscal year 2026, and the median home value being currently unavailable, we can still derive some key figures.
In the case of using the Section 8 FMR, the implied gross yield can be calculated by dividing the annual rental income by the property value. However, without the median home value, we cannot provide a precise gross yield figure. Typically, if we were to estimate based on historical data, a property in this ZIP code would likely have a gross yield below the national average, given that the FMR is set to ensure affordability for low-income households.
When considering the market rent scenario, the lack of specific market rent data makes it challenging to provide an exact gross yield. Nevertheless, the general principle holds that market rents tend to offer higher gross yields compared to Section 8 rents because they are typically closer to the actual market rates.
The renter density in ZIP 63942 stands at 15.0%, indicating a moderate level of demand for rental properties. This density, combined with the unavailability of the Days on Market (DOM), suggests that while there is interest in renting, the competition between Section 8 and market-rate rentals could be significant.
Given the data constraints, the most realistic scenario leans towards using market rent for investment analysis, as it generally offers a better return on investment. The Section 8 scenario, while providing stable and reliable income, is limited by the government-set rent levels, which do not reflect the full market potential. For a clearer picture, acquiring the median home value and current market rent figures would be essential for landlords and investors looking to make informed decisions.
To conclude, while the exact gross yield cannot be stated due to missing data points, it is evident that market rent scenarios typically outperform Section 8 in terms of gross yield. Investors should consider these factors when evaluating the potential profitability of properties in ZIP 63942.
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.