Location: Adair County, MO | Metro: Adair County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 63540 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $890 for fiscal year 2026. This figure represents the maximum amount that a landlord can receive from the government for a Section 8 voucher tenant in this specific ZIP code.
To understand what a landlord will actually be paid, it's crucial to break down the components. The tenant is responsible for paying approximately 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 per month, the tenant would pay around $450. The remaining balance, up to the $890 limit, is covered by the government. In addition, there are utility allowances that vary but typically add another $100 to $200 to the monthly payment.
This means, for a two-bedroom unit, the total monthly reimbursement a landlord might expect is somewhere between $550 and $690, depending on the exact utility allowance and the tenant's contribution. If the local market rent for a two-bedroom apartment were higher than the SAFMR, say $1,000, then the landlord would face a shortfall of $110 to $350 each month. Conversely, if the market rent is lower than the SAFMR, the landlord would benefit from a surplus, but the maximum they can charge the tenant remains capped at 30% of the tenant's income plus utilities.
In ZIP 63540, since the local market rent data is currently unavailable, it's important to consider the SAFMR as the upper limit for government reimbursement. Landlords should ensure that their rent pricing aligns with this figure to avoid financial loss. If the market rent is indeed higher than the SAFMR, landlords must decide whether to accept the lower guaranteed income or risk renting to tenants who cannot afford the difference.
In summary, landlords in ZIP 63540 can expect a reimbursement gap if the market rent exceeds $890. They must carefully price their units to maximize occupancy while minimizing financial strain. The typical scenario, given the SAFMR of $890, suggests a potential reimbursement gap of $110 to $350 per month, assuming a market rent of $1,000. However, without specific local market rent figures, this is a hypothetical example based on common market conditions.
Data Sources: FMR data from HUD (2027). 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.