Location: Carroll County, MO | Metro: Carroll County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 64682 might have several valid concerns regarding the feasibility of investing in rental properties here. Let's address these concerns with the available data.
The first objection is whether the Fair Market Rent (FMR) of $890 for the fiscal year 2026 will sufficiently cover the mortgage payments on a home valued at $263,055. To determine this, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of around 4%, the principal and interest payment alone would be approximately $1,275 per month. This figure does not include property taxes, insurance, and maintenance costs. Clearly, the FMR of $890 falls short of covering the mortgage payment, indicating that relying solely on this rent level would result in a financial loss for the landlord. However, it's important to note that the FMR represents the median rent for the area and does not account for higher-end rentals that could command more than $890 per month.
The second concern is the adequacy of renter demand at 15.8%. While this percentage seems low, it's crucial to understand what it represents. The 15.8% likely refers to the proportion of households that are renters. In ZIP 64682, this means there is a significant number of residents who are interested in renting properties. For example, if the total number of households in the area is 10,000, then approximately 1,580 households are renters. This is a substantial base of potential tenants, which can provide stability for landlords and small-portfolio investors. However, the data does not specify the total number of households, so we cannot conclusively state the absolute demand without additional information.
The final objection is whether housing vouchers will keep pace with market rents of $845. Vouchers are intended to help low-income families afford decent housing, but their value can vary widely depending on the local housing authority's policies and the federal funding levels. In ZIP 64682, the voucher amount might not match the market rent of $845, especially if the area experiences rapid increases in housing costs. Investors should consider the historical trend of voucher amounts relative to market rents to make an informed decision. Unfortunately, the provided data does not give us insight into the past performance or future projections of voucher amounts, making it difficult to predict if they will cover the market rent in the coming years.
In summary, while the FMR does not cover the mortgage on a typical home in ZIP 64682, there is a notable base of renters. However, the sustainability of housing vouchers in relation to market rents remains uncertain based on the given data. These points highlight both the challenges and opportunities present in the area for real estate investment.
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.