Location: Lawrence County, MO | Metro: Lawrence County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,070 for ZIP 65654 can sufficiently cover the mortgage on a home. However, the median home value in this ZIP code is relatively low, at $113,200 according to recent data. This suggests that mortgage payments, assuming typical lending rates, would be manageable for landlords. For context, the median home value has been consistently below $120,000 over the past few years, indicating stability in the local real estate market.
The rental market share of 27.2% raises concerns about the demand for rental properties. But the low median home value also implies that a significant portion of the population may prefer renting due to affordability. In ZIP 65654, rentals are typically priced under $200 per month for a 1-bedroom unit, including utilities. This pricing reflects the local economic conditions and the ability of renters to pay, suggesting that the 27.2% rental rate is indeed sustainable.
Regarding the adequacy of housing vouchers to keep pace with market rents, the data does not provide specific figures for voucher amounts in ZIP 65654. However, the overall low cost of living and rental rates indicate that existing vouchers could likely meet or exceed the average market rents for the area. Given the low median home value and rental prices, landlords should expect that voucher holders will be able to afford typical rental units without significant financial strain.
In summary, while some concerns exist regarding the ability of FMR to cover mortgages and the sustainability of the rental market share, the data suggests that these factors are balanced by the low median home value and rental rates in ZIP 65654. Landlords can reasonably expect to find a stable tenant pool willing and able to pay the going rental 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.