Location: Ripley County, MO | Metro: Ripley County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,320 |
| 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)
A skeptical investor might question whether the Fair Market Rent (FMR) of $900 for ZIP 63955 can cover the mortgage on a typical home. According to recent data, the median home value in this area is $154,800, significantly lower than the U.S. median house value of $338,100. However, the average home price in 63955 has appreciated strongly, increasing by 13.45% over the past year. This appreciation suggests that while the FMR may not cover the mortgage on a new purchase today, it could do so if the property was bought at a lower price point in the past.
The median household income in ZIP 63955 is $43,781, placing it in the 13th percentile of U.S. household incomes. Given this context, the question arises whether there is sufficient demand from renters at the 21.4% level. Analysis of rental properties shows that the majority of rentals are priced between $300 and $499 per month, inclusive of utilities. This indicates that the rental market is primarily catering to lower-income individuals who may not be able to afford the higher FMR of $900. However, the data does not provide a direct measure of the 21.4% renter demand level, leaving some uncertainty regarding the exact demand.
Another concern is whether housing vouchers will keep pace with market rents. The Housing Choice Voucher Program dashboard from HUD.gov provides insights into voucher usage trends, but specific data for ZIP 63955 is not readily available. A study from the Furman Center suggests that despite concerns over subsidy levels, voucher success rates have not been significantly impacted. This implies that even if the voucher amount is not directly aligned with the FMR, it still enables families to secure housing within the ZIP code. However, without precise data for 63955, it remains challenging to definitively conclude how well vouchers align with market rents in this particular area.
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.