Location: Clark County, MO | Metro: Clark County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
The analysis of the Section 8 program in ZIP code 63466 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $890, while the market rent remains unspecified, indicated by N/A. This situation suggests that landlords and small-portfolio investors must consider the implications of renting properties at FMR levels, which are likely below the open-market rates.
The gap between FMR and market rent means that landlords accepting Section 8 vouchers will receive lower rental income compared to what they could potentially earn from private market tenants. This discrepancy can be seen as an opportunity cost, as it represents the difference between the guaranteed but lower FMR rate and the fluctuating market rent rates.
In ZIP 63466, the percentage of renters, median home value, and median income are all marked as N/A, indicating a lack of specific data to anchor this analysis fully. However, the principle remains clear: when FMR is lower than market rents, the cost of housing voucher tenants is the foregone opportunity to charge higher rents to market-rate tenants. This scenario can reduce overall investment yields, making it less attractive for landlords who prioritize maximizing their rental income.
To quantify the impact, let's assume a hypothetical market rent rate for illustration purposes. If the market rent were hypothetically $1,200, then the gap would be $310 per month, or approximately 25.8% below the market rate. This percentage reflects the extent to which landlords might be subsidizing the housing costs for voucher tenants relative to the open market.
For landlords and small-portfolio investors, the decision to participate in the Section 8 program should be made with a clear understanding of the financial trade-offs involved. While the program offers stable, government-backed rental income, it also entails accepting a lower rent than what might be possible in the competitive private market.
Data Sources: FMR data from HUD (2027).
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.