Location: St. Joseph, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 64474 for Section 8 properties involves three key questions:
1) Does the Fair Market Rent (FMR) of $1050 cover the debt service on a property valued at $272,020?
If the landlord can secure a mortgage rate that allows the FMR to comfortably exceed the monthly debt service, then the answer is yes. For instance, if the monthly debt service is $700, the FMR of $1050 clearly covers this amount, making the investment viable.
If the monthly debt service exceeds $1050, the answer is no. An example would be if the monthly debt service is $1100; the FMR cannot cover this expense, leading to a loss.
2) How does the market rent of $811 compare to the FMR of $1050?
If the market rent is below the FMR, the answer is yes. In ZIP 64474, the market rent of $811 is lower than the FMR, indicating that Section 8 tenants could potentially pay more than what the market dictates, thus providing a margin above typical rental income.
If the market rent were equal to or higher than the FMR, the answer would be it depends. However, since the market rent is lower, this branch confirms the potential profitability of Section 8 investments.
3) Is there sufficient demand with 31.4% of residents being renters and an unknown number of days on the market (DOM)?
The 31.4% of residents who are renters suggests a moderate level of demand. Given that the market rent is below the FMR, it's reasonable to infer that there might be enough demand to fill vacancies promptly, even without knowing the exact DOM figure.
If the DOM were known and consistently low, say under 30 days, the answer would be yes, as quick leasing indicates strong demand.
If the DOM were high, say over 60 days, the answer would be no, as it would suggest difficulty in filling vacancies, reducing the attractiveness of the investment.
With the current data, if the first two conditions are met (FMR covering debt service and market rent being below FMR), the presence of 31.4% renters supports the viability of investing in ZIP 64474 for Section 8 properties. The unknown DOM figure introduces some uncertainty but doesn't necessarily negate the investment opportunity given the other positive indicators.
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.