Location: St. Joseph, MO | Metro: St. Joseph, MO-KS MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 66008 within the St. Joseph, MO-KS MSA highlights several key points. The Fair Market Rent (FMR) set by HUD for the area in fiscal year 2024 is $880. However, the lack of specific market rent data for comparison makes it challenging to determine the exact cash flow potential without further investigation.
To derive the rent-to-price ratio, we can use the median home value of $231,994. This suggests that the rental income at the FMR of $880 would be approximately 0.47% of the median home value per month. While this percentage is low, it does not directly indicate the viability of cash flow without knowing the specific costs associated with maintaining and managing properties in the area.
The median days on market (DOM) and the percentage of homes that have had their prices cut are not available. These metrics could provide insight into the broader real estate market dynamics, such as how quickly properties are selling and if there's a trend towards price reductions, which might affect the rent-vs-buy decision-making process for potential tenants.
In ZIP 66008, voucher tenants will likely cashflow at the FMR but only marginally due to the typical costs involved in property management and maintenance. For optimal cash flow, landlords should focus on premium units that can command slightly higher rents while still being within the FMR guidelines. This strategy allows investors to maximize their returns while ensuring they remain competitive with the voucher system.
The strongest investor angle in this market is stability. With a consistent FMR and a median home value that indicates a balanced market, investors can expect reliable cash flow and a stable investment environment, making it an attractive option for those seeking long-term, steady returns.
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.