Location: Callaway County, MO | Metro: Callaway County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,380 |
| 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 analysis of the Section 8 program in ZIP 65059 reveals a significant gap between the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) and the actual market rent based on Census ACS data. For fiscal year 2024, the FMR in ZIP 65059 is $1010, while the market rent stands at $840. This represents a $170 difference, or a 20.24% gap between the two figures.
The discrepancy indicates that voucher tenants in ZIP 65059 can potentially secure rental properties at a rate lower than the open-market average. Given that only 13.6% of residents are renters and the median home value is $299,014, it suggests that homeownership is prevalent in the area. Additionally, with a median income of $76,765, landlords can leverage the higher FMR to attract voucher tenants who might otherwise find the market too expensive.
In this context, voucher tenants make ZIP 65059 a yield play for landlords. By accepting Section 8 vouchers, landlords can charge closer to the FMR of $1010, which is above the current market rent. This strategy allows landlords to maximize their returns while still providing affordable housing options to those eligible for the Section 8 program. However, landlords should also consider the administrative requirements and potential delays associated with housing voucher tenants.
To summarize, the gap between FMR and market rent in ZIP 65059 presents an opportunity for landlords to achieve higher yields by participating in the Section 8 program. This is especially true given the low percentage of renters and relatively high median income levels in the area.
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.