Location: Sullivan County, MO | Metro: Linn County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $890 for ZIP code 64646 can realistically cover the mortgage payments on a typical home in the area. While the FMR provides a benchmark for rental prices, it does not specify the cost of mortgages, which vary based on factors such as interest rates, down payments, and the value of the property. To accurately assess this, an investor would need to consult local real estate listings and current mortgage rates.
The concern over the level of renter demand is also valid, especially given that only 29.2% of the population in ZIP 64646 are renters. This percentage suggests a relatively smaller pool of potential tenants compared to areas with higher percentages. However, it's important to consider that even a smaller percentage can translate into a substantial number of tenants if the overall population is large. Additionally, the percentage of renters does not necessarily indicate the demand for rental properties; other factors such as job growth, housing stock, and vacancy rates play a role.
Another objection is whether Housing Choice Vouchers will keep up with market rents averaging around $500. The data indicates that the voucher amounts are adjusted annually based on the federal government's assessment of the area's FMR. If the government's adjustments match the actual increases in market rents, then the vouchers should be sufficient. However, historical data shows that sometimes there is a lag between the actual rent increases and the adjustment of voucher amounts. Therefore, while the intention is to align with market rents, there could be periods where the gap widens, affecting the affordability for voucher holders.
In summary, while the provided data gives a snapshot of the rental market in ZIP 64646, it does not offer a complete picture to address all investor concerns. The FMR of $890 needs to be cross-referenced with current mortgage costs, the 29.2% renter rate requires additional context regarding the total number of renters and the local economy, and the Housing Choice Vouchers must be monitored against actual rent trends to ensure they remain effective.
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.