Location: Mercer County, MO | Metro: Mercer County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 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 landlord considering ZIP code 64673 for a Section 8 investment must navigate several key factors to make an informed decision. The first step involves evaluating whether the Fair Market Rent (FMR) of $890 can cover the debt service on a property valued at $111,824. To determine this, we need to know the monthly mortgage payment and any other recurring costs associated with the property. If the total debt service is less than or equal to $890, then the answer is yes; the FMR clears the debt service.
If the total debt service exceeds $890, the next question is whether the market rent of $575 is above, at, or below the FMR. If market rent is above or at $890, then the landlord can potentially charge a higher rent to non-Section 8 tenants, making up for the shortfall. In this case, the answer would still be yes, but with the caveat that the investment relies on non-Section 8 tenants paying higher rents.
If the market rent is below $890 but above $575, the landlord can still consider the investment viable if they are willing to accept a lower rent from Section 8 tenants. This scenario requires careful consideration of the property's expenses and the landlord's tolerance for reduced income.
Should the market rent be below $575, the investment becomes less attractive due to the inability to charge a competitive rent even to non-Section 8 tenants. In this case, the answer is no, as the investment does not offer a sustainable financial return.
The final factor to consider is the demand for rental properties. With 19.3% of residents being renters and no data available for days on the market (DOM), we must assess whether there is sufficient demand. If the local real estate market shows a high occupancy rate and low vacancy, the answer is yes; there is enough demand to support a Section 8 investment. However, if the market indicates a weak demand, characterized by high vacancy rates and long DOM, the answer is no; the investment is unlikely to succeed.
In cases where the demand is moderate, the answer depends on the landlord's ability to manage and maintain the property effectively. A well-managed property can attract and retain tenants even in a challenging market environment.
To summarize, a landlord should proceed with a Section 8 investment in ZIP 64673 only if the FMR covers debt service, the market rent is competitive, and there is sufficient demand. If any of these conditions are not met, the investment is not advisable.
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.