Location: Livingston County, MO | Metro: Livingston County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 64686 in relation to Section 8 properties reveals several potential challenges that landlords must be prepared to address. Firstly, tenant turnover can be problematic due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $900 for FY 2026. This gap may lead to frequent tenant changes as individuals seek housing that fits their budget, thereby increasing administrative costs and property management efforts.
Vacancy exposure is another significant concern. With a typical home value of $126,365 and a median income of $71,563, the area may struggle with prolonged days on market (DOM), which can significantly impact cash flow and profitability. Landlords should be ready to manage periods of vacancy effectively, perhaps through strategic pricing or targeted marketing to attract Section 8 tenants.
Deferred maintenance poses a considerable risk. The lower median income suggests that tenants might not be able to afford substantial repairs beyond routine wear and tear. Consequently, landlords will likely need to invest in regular maintenance to keep their properties up to standard, which can add to the overall cost of ownership. The typical home value also indicates that the cost of repairs could be relatively high, especially if the property needs significant work.
However, these risks are tempered by the high concentration of renters in the area, with a 5.7% renter share. High renter density often correlates with higher demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. Additionally, the fixed nature of Section 8 rents can offer some predictability in an otherwise volatile rental market.
In conclusion, despite the challenges associated with tenant turnover, vacancy exposure, and deferred maintenance, the high renter density and predictable income from Section 8 tenants make ZIP code 64686 a moderate risk for a first-time Section 8 landlord.
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.