Location: St. Francois County, MO | Metro: Madison 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $810 | $139,142 | 0.58% | F |
| 2BR | $1,060 | $176,109 | 0.6% | D |
| 3BR | $1,280 | $261,787 | 0.49% | F |
| 4BR | $1,410 | $344,114 | 0.41% | F |
| 5BR | $1,636 | $459,272 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 63640, located in Farmington, Missouri, presents a significant opportunity for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 29,263, the area has a substantial rental market, as 36.6% of residents are renters. This indicates that the ZIP is indeed renter-heavy, suggesting deep voucher demand. The median household income stands at $61,913, which provides a benchmark against which rental prices can be evaluated.
The typical market rent in this area is $857, which constitutes approximately 14% of the median household income. This percentage aligns well with the affordability standards set by the Department of Housing and Urban Development (HUD), which generally recommends that no more than 30% of a household's income should go towards housing costs. However, it's important to note that many Section 8 households operate on significantly lower incomes, often below the median.
Comparing the market rent to the Fair Market Rent (FMR) of $970, as projected for FY 2026 in the metro area, reveals that the current market rent is below the FMR. This suggests that landlords could potentially increase their rents slightly while still remaining competitive and within HUD guidelines. The FMR represents the maximum amount that HUD will pay for a unit, and with the current market rent being lower, there is room for adjustment without alienating potential tenants.
A landlord in ZIP 63640 should anticipate a tenant profile that includes a mix of low-income families and individuals who rely on housing vouchers to secure affordable living spaces. These tenants are likely to be sensitive to price increases and may require assistance with navigating the voucher application process. Given the strong rental market and the presence of a significant number of voucher holders, landlords who are willing to participate in the Section 8 program can benefit from steady occupancy rates and a stable source of income.
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.