Location: Miller County, MO | Metro: Miller County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 65082 might raise several concerns regarding the feasibility of investing in properties under the Section 8 program. Here's a detailed analysis addressing these points:
The FMR of $990 does not directly cover the mortgage on a home priced at $241,297. To understand if it can support a mortgage, we need to consider the interest rate and loan term. Assuming a typical 30-year fixed-rate mortgage at an average interest rate, the monthly payment on a $241,297 home would likely exceed the FMR. However, the value of the property must also be considered. If the property is valued below the median home price or if the investor can secure a lower interest rate, the FMR could potentially cover the mortgage.
The rental demand in ZIP 65082 stands at 11.2%, which is relatively low compared to national averages. This suggests that there may be limited competition among renters, making it challenging to fill vacancies quickly. However, the demand percentage alone does not provide a complete picture. It is essential to look at the total number of households and the vacancy rates to gauge the actual demand. A low demand percentage could still translate into a sufficient number of potential tenants if the overall population is large.
The market rent of $1,356 is higher than the FMR of $990, indicating that vouchers may not cover the full cost of renting a market-rate property. The discrepancy between voucher amounts and market rents is a common issue across many areas. While it is difficult to predict future adjustments to voucher amounts, historically, they have increased over time to better align with market conditions. Investors should monitor local housing authority announcements and federal guidelines for any changes that might affect voucher values.
In conclusion, while the data presents some challenges, particularly with regard to covering mortgage payments and keeping up with market rents, it is crucial to conduct a thorough analysis of the local real estate market, including property values, interest rates, and tenant demographics, before making investment decisions. The low rental demand percentage is a red flag, but it must be balanced against other factors such as population size and vacancy rates.
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.