Location: Montgomery County, MO | Metro: Callaway County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 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)
The market analysis for Section 8 investors in ZIP code 65264 reveals a significant gap between the HUD Fair Market Rent (FMR) and the actual market rent. The HUD FMR for the area is set at $940 for the fiscal year 2024, while the Census ACS reports a much lower market rent of $398. This disparity means that voucher tenants will cashflow at a substantial margin in this region, making it highly attractive for landlords and small-portfolio investors.
To derive the rent-to-price ratio, we use the median home value of $268,407. Dividing the HUD FMR of $940 by the median home value gives us a ratio of approximately 0.35%, which indicates that rental income is relatively low compared to property values. However, given the low market rent, the potential for positive cash flow is strong when utilizing Section 8 vouchers.
The dynamics of days on market (DOM) and price-cut share are noted as N/A, suggesting that there is no significant data available to indicate frequent price reductions or extended listing periods. This absence of data points towards a stable market where properties are likely selling at or near their listed prices without much negotiation, further supporting the attractiveness of the area for investors.
In conclusion, the strongest investor angle in ZIP 65264 is cashflow. With voucher tenants paying significantly above the market rent, landlords can expect steady and reliable income from their investments. The high rent-to-price ratio derived from HUD FMR and median home values also suggests that rental income can offset mortgage payments and other expenses effectively, leading to a profitable investment strategy.
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.