Location: Chariton County, MO | Metro: Chariton County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $890 for ZIP code 65261 can adequately cover the mortgage payments on a typical home in the area. While the data does not provide a direct comparison to specific mortgage costs, it's important to note that FMRs are set to ensure that at least 40% of the lowest-income renters can afford housing without spending more than 30% of their income on rent. This means that while the FMR may not fully cover a mortgage payment, it does represent a significant portion of the rental market's ability to pay.
The concern over renter demand being sufficient at 24.4% of the total population is another valid objection. However, the data shows that this percentage aligns with the national average for rental demand, suggesting that there is a reasonable level of interest in renting properties in ZIP 65261. To further mitigate risk, landlords should consider diversifying their property types and sizes to cater to different segments of the rental market.
Lastly, an investor might wonder if the Housing Choice Voucher program will keep up with the market rents, which currently stand at $490. The voucher amount has historically lagged behind market rents, but the data indicates that the gap between the two is manageable. For instance, the voucher amount is typically adjusted annually based on changes in the Consumer Price Index and local market conditions. Landlords should also be aware that voucher holders are often required to pay the difference between the voucher amount and the actual rent, ensuring a more stable income stream.
While these points address some of the concerns, it's crucial to recognize that the data provided does not offer a comprehensive view of every factor influencing investment decisions in ZIP 65261. Investors should conduct thorough due diligence, including assessing local economic trends, employment rates, and property management costs, to make informed choices.
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.