Location: Montgomery County, MO | Metro: Callaway County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 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)
The potential risks for landlords investing in Section 8 properties in ZIP code 65069 include significant tenant turnover due to the disparity between the market rent of $833 and the Fair Market Rent (FMR) of $1140 for fiscal year 2024. This difference can lead to frequent changes in occupancy, which may result in higher costs associated with turnover, such as cleaning, repairs, and administrative tasks.
Vacancy exposure is another concern. The average days on market (DOM) for homes in this area is not available, which makes it difficult to predict how long a property might remain vacant between tenants. A prolonged vacancy can significantly impact cash flow and profitability.
Deferred maintenance is also a notable risk. With a median household income of $77,500 and an unspecified typical home value, there's a possibility that some Section 8 tenants may not prioritize regular upkeep. This could lead to additional expenses for landlords in maintaining the property to meet housing quality standards.
However, these risks must be weighed against the high density of renters in the area, represented by an 18.8% renter share. High renter density typically correlates with increased demand for housing vouchers, making it easier to find tenants who qualify for Section 8. This robust demand can help mitigate the risk of vacancies and ensure steady rental income.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 65069 is moderate.
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.