Section 8 Fair Market Rent (FMR) for ZIP 63437 - 2027

Investment Score for ZIP 63437

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 63437, Clarence, MO, might have several valid concerns regarding the feasibility of investing in a Section 8 property. Let's address these objections head-on using available data.

• Will FMR $890 (metro FY 2026) cover the mortgage on a $178,840 home? The Fair Market Rent (FMR) for a one-bedroom apartment in the Clarence, MO area is projected to be $890 in fiscal year 2026. To determine if this will cover the mortgage on a $178,840 home, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment would be approximately $860. This means that the FMR would indeed cover the mortgage, with a slight surplus of $30 per month. However, it's important to note that this calculation does not account for property taxes, insurance, maintenance costs, or other expenses associated with owning a rental property. These additional costs must also be considered when evaluating the profitability of the investment.
• Is there enough renter demand at 24.1%? The percentage of renter-occupied housing units in ZIP 63437 is 24.1%. While this figure is relatively low compared to national averages, it suggests that there is still a significant number of residents who prefer renting over owning. For a small town like Clarence, MO, this could indicate a stable rental market, especially for affordable housing options. It's worth noting that the demand for Section 8 rentals is often driven by the availability of subsidized housing rather than the overall percentage of renters. Therefore, the low percentage does not necessarily imply weak demand for Section 8 properties specifically.
• Will vouchers keep pace with $647 market rents? The average market rent for a one-bedroom apartment in Clarence, MO, is $647. Given that the FMR is set higher at $890, landlords participating in the Section 8 program can expect to receive a payment close to the FMR, which is above the current market rent. This indicates that vouchers should be sufficient to cover the rent, even at the market rate. However, the data does not provide specific projections for voucher amounts in future years, so long-term investors should monitor any changes in government funding and policies that might affect the value of vouchers.

In conclusion, while there are valid concerns about covering mortgages, ensuring renter demand, and maintaining pace with market rents, the data suggests that ZIP 63437 presents a reasonable opportunity for Section 8 investments. Careful financial planning and ongoing monitoring of local market conditions will be crucial for success.

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.