Location: Ozark County, MO | Metro: Douglas County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $890 for ZIP 65755 (Squires, MO) can sufficiently cover the mortgage on a home valued at $167,900. To put this into perspective, let's consider a typical mortgage scenario. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment on a $167,900 home would be approximately $800. Therefore, the FMR of $890 would indeed cover the mortgage, leaving some room for maintenance and other expenses.
The investor may also doubt the demand for rentals at a rate of 1.1%. However, the rental vacancy rate in ZIP 65755 is currently 30.43%, which is significantly higher than the national average. This high vacancy rate suggests that there is ample supply of rental units relative to demand. Yet, the median house price of $136,547 in this area is much lower than the U.S. median of $318,879, making it an attractive option for renters who seek affordable housing. Thus, while the demand appears low based on the vacancy rate, the affordability of housing could attract more renters over time.
Another concern could be whether HUD vouchers will keep pace with market rents in ZIP 65755. Unfortunately, the data does not provide specific information on voucher utilization rates for this particular ZIP code. However, it is known that HUD measures a Public Housing Agency’s (PHA) overall Housing Choice Voucher (HCV) utilization rate as the maximum of its authorized voucher or budget authority used in the given year. This means that PHAs can achieve full utilization by either leasing all their authorized vouchers or spending their entire annual budget authority. While this doesn't guarantee that voucher amounts will match market rents, it indicates that PHAs are incentivized to utilize their vouchers effectively, which could help maintain a steady flow of rental assistance.
In summary, the FMR of $890 can cover the mortgage on a home valued at $167,900, though the current high rental vacancy rate of 30.43% raises questions about demand. The affordability of housing in ZIP 65755, however, could attract more renters. As for vouchers, while specific data for this ZIP code is not available, the incentive structure for PHAs suggests they will work to maximize voucher usage, potentially keeping pace with market rents.
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.