Location: Mercer County, MO | Metro: Harrison County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 64632 might have several valid concerns regarding the feasibility of investing in rental properties here. Let's address these points directly with the available data.
Will FMR $1,010 (metro FY 2026) cover the mortgage on a $163,226 home?
The Fair Market Rent (FMR) for ZIP 64632 is set at $1,010 for metro FY 2026. This figure represents the average monthly rent that a tenant could afford based on income levels. However, it does not necessarily reflect the mortgage payment on a home valued at $163,226. To determine if the FMR can cover the mortgage, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the principal and interest payment alone would be approximately $850 per month. This amount is less than the FMR, suggesting that the rent could indeed cover the mortgage payment. However, this calculation does not include other costs such as property taxes, insurance, maintenance, and utilities, which must also be considered.
Is there enough renter demand at 14.7%?
The percentage of renters in ZIP 64632 stands at 14.7%. While this number is relatively low compared to urban areas, it does not necessarily indicate insufficient demand. The actual number of renters is a critical factor, and the percentage alone does not provide a complete picture. To accurately assess the demand, one would need to know the total population and the number of units available for rent. A low percentage of renters could mean that homeownership is prevalent, but it doesn't negate the possibility of a strong rental market if the area attracts tenants due to employment opportunities, schools, or lifestyle preferences.
Will vouchers keep pace with $613 market rents?
The current market rent in ZIP 64632 is $613. Vouchers, typically issued through programs like Section 8, are designed to help low-income families pay for housing. However, whether these vouchers will keep up with the market rents depends on the local housing authority's funding and policies. If the voucher amount is below $613, landlords may face challenges in accepting them without subsidizing the difference. Conversely, if the voucher amount matches or exceeds the market rent, it could make the property more attractive to those who qualify for assistance. Unfortunately, the provided data does not specify the exact voucher amounts or their trends over time, so we cannot definitively state if they will keep pace with market rents.
In summary, while the FMR can cover the mortgage payment on a home valued at $163,226, the overall cost of ownership needs thorough consideration. The 14.7% renter rate suggests a smaller pool of potential tenants, yet the reasons behind this statistic are crucial for understanding the true demand. Lastly, the adequacy of vouchers in covering market rents remains uncertain without specific figures on their value and adjustments over time.
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.