Location: St. Clair County, MO | Metro: Benton County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The ZIP code 65735 presents several challenges for potential Section 8 landlords. First, tenant turnover could be problematic due to the discrepancy between market rent and the Fair Market Rent (FMR) set at $890 for fiscal year 2026. This fixed amount might not align with local market conditions, leading to frequent moves by tenants seeking better deals elsewhere.
Vacancy exposure is another concern. With a Days on Market (DOM) figure that is currently unavailable, it's difficult to predict how long properties might remain vacant. Vacancies can significantly impact cash flow and profitability, especially if the period is prolonged.
The deferred maintenance exposure is also notable. Although the typical home value is not specified, the median income of $72,724 suggests that homeowners may struggle to keep up with maintenance costs, which could translate into higher repair expenses for landlords. This is particularly important when considering the potential for properties to deteriorate over time without adequate upkeep.
However, these risks must be weighed against the high renter share of 16.9%. High renter density typically indicates strong demand for rental properties, including those that accept Section 8 vouchers. This demand can help mitigate some of the risks associated with vacancy and tenant turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 65735 is moderate. While there are significant challenges, the robust demand for rentals provides a counterbalance to these risks.
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.