Location: Livingston County, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 64624 might have several concerns regarding the viability of renting properties to Section 8 participants. Addressing these points with available data can provide clarity.
The first objection is whether the Fair Market Rent (FMR) of $1050 for ZIP 64624 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $191,054. The data shows that while the FMR is a guideline set by HUD, it does not directly reflect mortgage payments. However, using an average interest rate of 4.5% and a 30-year fixed mortgage, the monthly payment on a $191,054 home would be approximately $950. This means the FMR of $1050 is indeed adequate to cover the mortgage, leaving some room for property taxes, insurance, and maintenance.
A second concern is the level of renter demand at 17.9%. This percentage indicates the share of households that are renters, which suggests moderate demand. While 17.9% may seem low compared to other areas with higher rental rates, it is important to note that the demand for affordable housing can be quite stable. Additionally, the presence of Section 8 participants ensures a steady stream of tenants who are committed to paying their rent through government subsidies. Thus, despite the relatively low percentage, the demand for affordable rentals remains consistent.
The final objection is whether the voucher amounts will keep pace with the market rents of $725. The FMR of $1050 is higher than the market rent, indicating that voucher holders could potentially cover more than just the base rent. This suggests that even if the voucher amount is less than the market rent, it is still likely to be sufficient given the lower-than-average rent prices in the area. Moreover, HUD periodically adjusts FMRs to reflect changes in the cost of living and rental market conditions, ensuring that vouchers remain relevant.
While the data provides insights into these questions, it's worth noting that external factors such as economic downturns or changes in local housing policies could impact the overall financial landscape. Nonetheless, based on the provided information, ZIP 64624 appears to offer a viable investment opportunity for landlords and small-portfolio investors interested in Section 8 properties.
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.