Location: Randolph County, MO | Metro: Howard County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
In ZIP code 65281, there are several factors that could present challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, especially when comparing the market rent of $729 to the Federal Market Rent (FMR) of $800 for FY 2024. The difference suggests that landlords might struggle to attract tenants willing to pay the higher FMR rate, leading to increased turnover and associated costs.
Vacancy exposure is another critical issue. With the days on market (DOM) being listed as N/A, it's challenging to predict how long a property might remain vacant between tenants. This uncertainty can result in lost rental income, which is particularly impactful for Section 8 properties where the rent is closely tied to government rates.
The deferred maintenance exposure is also noteworthy. Given the typical home value of $177,997 and the median income of $73,705, many homeowners may find it difficult to keep up with necessary repairs and maintenance. This could translate into higher maintenance costs for landlords who inherit properties in less-than-pristine condition, further impacting profitability.
However, these risks must be weighed against the substantial 14.0% renter share in the area. High renter density often correlates with greater demand for housing vouchers, such as those provided through Section 8. This demand can stabilize occupancy rates and reduce the likelihood of extended vacancies. Moreover, the presence of a large number of renters can ensure a steady stream of potential tenants, mitigating some of the risks associated with turnover and maintenance.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 65281.
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.