Location: Brown County, KS | Metro: St. Joseph, MO-KS MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The classification of ZIP 66532 hinges on the interplay between its yield potential and stability metrics. With a Fair Market Rent (FMR) of $970 for the fiscal year 2024, this figure stands notably above the market rent of $631. This discrepancy suggests a higher-than-average rental income potential, which is a key indicator of yield. However, the median home value of $174,797 must also be considered, as it affects the capital investment required to enter this market.
Stability, in this context, is assessed through the percentage of renters, which is 11.2%, and the median household income, estimated at $76,875. The low percentage of renters indicates that the majority of residents own their homes, potentially leading to less demand for rental properties. This factor can reduce the stability of rental income streams in the area. The median household income, while not exceptionally high, provides a reasonable baseline for assessing the ability of tenants to afford rents at the FMR level.
Given these figures, ZIP 66532 does not fit neatly into a high-yield/low-stability "flip-style" market category. Instead, it presents characteristics of a steady-cashflow zone, albeit with some caveats. The higher FMR compared to the market rent suggests good cash flow potential for rental properties, especially if they are priced slightly below the FMR but above the average market rate. However, the relatively low percentage of renters and the lack of data on days on market (DOM) indicate that the market may not be as stable as one might hope for consistent cash flow.
In conclusion, ZIP 66532 offers a moderate yield opportunity with a rental income potential significantly above the market average. Its stability, however, is somewhat compromised by the low proportion of renters, suggesting that while it may provide steady cash flow, the overall market conditions require careful consideration before making significant investments. Landlords and small-portfolio investors should focus on pricing strategies that leverage the higher FMR while being mindful of the local economic conditions and the relatively low demand for rentals.
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.