Location: Callaway County, MO | Metro: Callaway County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 65067 are significant and should be carefully considered before making any decisions. Firstly, tenant turnover poses a challenge due to the disparity between the market rent and the Fair Market Rent (FMR) set at $1020 for FY 2024. This difference can lead to frequent changes in tenants, which is costly and time-consuming for landlords.
Secondly, the area has a high exposure to vacancies. The Days on Market (DOM) figure is not available, but this typically indicates how long it takes for a property to find a tenant. A longer DOM suggests higher vacancy rates, which can be detrimental to cash flow. In ZIP 65067, landlords must be prepared for extended periods without rental income.
Additionally, there is a risk of deferred maintenance. With a typical home value of $144,829 and an unknown median income, it's possible that residents may lack the financial resources to maintain their homes properly. This can result in higher repair costs for landlords, who are responsible for keeping the property up to standard.
However, these risks must be weighed against the fact that 0.0% of the population are renters. High renter density often correlates with a higher demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. Despite the lack of specific data on median income, the absence of other homeowners in the area might suggest a concentrated need for affordable housing solutions.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 65067 is moderate. While there are considerable challenges, the potential for stable occupancy through voucher programs offers some mitigation against the risks of high turnover and vacancy exposure.
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.