Yup, that one is a goner.....
A new housing is going to be expensive and will require some new bearings, making them pretty expensive as compared to a used lower unit. Used lowers can be had from 400 to 700 or so. Ebay is an easy source, especially when you can purchase from somebody hundreds of miles from salt water.
Thankfully there's a ton of interchangeability. 35-50hp Honda's are all the same as long as it's off an engine w/carbs.
Watch for cracks on either side of the area missing on yours, and be cautious of welds in the same area. These things are notorious for splitting their cases (problem NOT unique to Honda either). What happens is corrosion builds up between that threaded ring and the case, as well as the part of the bearing carrier just ahead of it and the case. Eventually the corrosion will build to the point it will split the case. They can be welded to repair at that point, but to do them right, they need to be pulled right down and done correctly.
Some will order a welder to just fill the crack - leaving the corrosion in place. Those are bad news as it's going to split again soon.
Done correctly, they will have a new retainer ring at minimum. If you don't see one of those, it's likely been hacked. RARELY can they be used over again for reassembly.