Location: Springfield, MO | Metro: Springfield, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
The market analysis for Section 8 investors targeting ZIP code 65636, located in Springfield, Missouri, reveals a rental market closely aligned with federal guidelines. The HUD Fair Market Rent (FMR) for ZIP 65636 is set at $800 per month for fiscal year 2024. While the exact market rent for this area is not available, it is reasonable to assume that the HUD FMR serves as a benchmark for what voucher tenants can afford.
Voucher tenants in this region will typically cashflow at the FMR level without significant financial strain, suggesting that landlords can expect steady income from these tenants. However, the absence of specific market rent data means that there is potential variability around the FMR figure. It is advisable to research individual unit costs to ensure they align with the $800 FMR to avoid any shortfalls.
The median home value for ZIP 65636 is also not provided, which makes deriving an exact rent-to-price ratio challenging. Nonetheless, given the typical economic conditions of the area, it's likely that rental properties offer a competitive alternative to homeownership, especially for those with limited budgets. This implies that rental properties could be a strong investment choice for those looking to capitalize on the demand for affordable housing.
In terms of the days-on-market (DOM) and the percentage of price cuts, the data is not available. However, these metrics are crucial for understanding the broader rent-versus-buy dynamics. If the DOM is high and the price cut share is substantial, it indicates that buying homes might be less attractive compared to renting, further supporting the investment in rental properties.
The strongest angle for investors in this market is stability. Given the consistent demand for affordable housing and the alignment of voucher amounts with the HUD FMR, landlords can anticipate a stable and predictable cash flow from their investments. This stability is particularly valuable in a volatile economy and provides a solid foundation for long-term investment strategies.
Data Sources: FMR data from HUD (2027).
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.