Location: Montgomery County, MO | Metro: Callaway County, MO HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $222,558 | 0.59% | F |
U.S. Census Bureau data (2024)
In ZIP 63361, the Section 8 program operates under specific economic parameters that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $850. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a unit in this specific ZIP code. It's important to note that this rate is tailored to reflect the local rental market conditions accurately.
The local market rent for a two-bedroom apartment, according to the Census ACS, is $757. This is the average rent charged for similar units in the area. However, the Section 8 voucher system does not directly pay this amount; it pays a combination of the tenant's contribution and the utility allowance to reach the total reimbursement to the landlord.
A voucher holder contributes a fixed percentage of their income toward rent. For low-income families, this is typically 30% of their adjusted monthly income. If we assume an average income level where the tenant contribution is around $300, the remaining $550 would come from the voucher program, along with any applicable utility allowances. Utility allowances can vary but often range between $100-$200.
This means that for a two-bedroom apartment, the total reimbursement to the landlord could be around $650-$750, depending on the utility allowance. Given that the market rent is $757, landlords might face a slight surplus if they charge exactly the market rent, as the reimbursement from the voucher program plus the tenant's contribution would cover most of the rent.
To walk through the specifics: if a landlord charges the market rent of $757, and the tenant contributes $300, the voucher program would need to cover the difference up to the SAFMR limit of $850. Since the total reimbursement cannot exceed the SAFMR, the landlord would receive $550 from the voucher program, bringing the total reimbursement to $850. In this case, the landlord would be paid the full SAFMR, and there would be a surplus of $93 above the market rent.
If the landlord charges more than the SAFMR, the tenant would still be responsible for 30% of their income, but the voucher program would only reimburse up to the $850 limit. This would create a reimbursement gap where the landlord would have to absorb the difference between the actual rent charged and the reimbursement received.
In summary, landlords in ZIP 63361 should aim to keep their rents close to the market rate of $757 to maximize their income while participating in the Section 8 program. Charging more than the SAFMR of $850 will result in a reimbursement gap, whereas charging at or slightly below the SAFMR will ensure full payment and potentially a surplus over the market rent.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.