Location: Knox County, MO | Metro: Adair County, MO
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 | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $153,640 | 0.66% | D |
| 3BR | $1,410 | $229,014 | 0.62% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Brashear, MO (ZIP 63533), might raise several concerns regarding the viability of investing in properties eligible for Section 8 housing assistance. Here are the most common objections and how the data addresses them:
Objection 1: Will Fair Market Rent (FMR) of $900 (metro FY 2026) cover the mortgage on a $235,650 home?
The FMR of $900 does not directly correlate to the mortgage payment on a $235,650 home. To accurately assess if the FMR will cover the mortgage, one must consider the interest rate and loan term. For example, with an average interest rate of 4.5% and a 30-year fixed mortgage, the monthly payment would be approximately $1,150. This means that the FMR of $900 would not fully cover the mortgage. However, it's important to note that the FMR is the maximum amount set by HUD for a rental unit to be considered affordable, and actual rents can be lower.
Objection 2: Is there enough renter demand at 13.0%?
The 13.0% figure represents the percentage of households that are renters. While this percentage is relatively low, it does not necessarily indicate a lack of demand. The number of renters is also influenced by the total population and household size. A low percentage could mean a smaller pool of potential tenants, but it does not preclude the possibility of finding renters. Furthermore, the demand for Section 8 eligible units is often driven by the availability of affordable housing options rather than the overall rental market share.
Objection 3: Will vouchers keep pace with $313 market rents?
The average market rent of $313 is below the FMR of $900, which suggests that vouchers can potentially cover a significant portion of the rent. However, whether vouchers will keep pace with market rents depends on the local administration's funding and policy decisions. The data provided does not specify the exact amount of voucher payments for ZIP 63533, so it's uncertain if they will fully cover the $313 market rent. Investors should monitor local housing authority announcements for updates on voucher payment standards.
In conclusion, while the data presents some challenges, such as the FMR not covering the full mortgage payment on a $235,650 home, it also highlights opportunities. The low market rent of $313 compared to the FMR of $900 indicates a potential for positive cash flow when voucher payments are factored in. However, the demand for rental units at 13.0% of households being renters requires careful consideration of the local market dynamics and the availability of affordable housing options.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.