Location: Lawrence County, MO | Metro: Lawrence County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,100 |
| 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)
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $930. This figure raises immediate concerns regarding whether it will sufficiently cover the mortgage payments on a home valued at $227,880. To evaluate this, we must first determine the expected mortgage payment. Assuming a typical 4% interest rate and a 30-year fixed mortgage, the monthly payment on a $227,880 home would be approximately $1,095. Given the FMR, it's clear that the rent alone would not cover the mortgage payment, necessitating additional income sources or a reassessment of investment strategies.
The rental demand in ZIP 65756 stands at 3.9%, which might seem low to potential investors. However, this percentage reflects the number of households renting compared to owning. While it does indicate a relatively small rental market, it also suggests that rental properties could command higher premiums due to lower competition. Additionally, the median home value of $221,200 in the area implies that homeownership may be out of reach for many residents, thus driving up the need for affordable rental options. Therefore, despite the seemingly low rental demand, there is still a viable market for rental properties.
A final concern is whether housing vouchers will keep pace with the local market rents. Unfortunately, the data provided does not include specific figures for voucher amounts in ZIP 65756. However, it's important to note that voucher programs are typically adjusted annually based on the cost of living and other economic factors. Landlords should monitor local HUD announcements and adjust their rental pricing accordingly to ensure compliance with voucher requirements while maintaining profitability.
In summary, while the FMR may not fully cover mortgage payments, the rental market in ZIP 65756 offers opportunities for investors who can manage their costs effectively. The low rental demand percentage should be viewed in the context of limited homeownership options, potentially leading to higher rental premiums. Lastly, although specific voucher amounts are not available, landlords can stay informed about adjustments to ensure they remain competitive and compliant.
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.