Location: St. Francois County, MO | Metro: Cape Girardeau, MO-IL MSA
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 | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $810 | $128,779 | 0.63% | D |
| 2BR | $1,060 | $128,554 | 0.82% | C |
| 3BR | $1,260 | $196,974 | 0.64% | D |
| 4BR | $1,590 | $248,801 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 63645, which encompasses Fredericktown, MO, presents a unique opportunity for landlords and small-portfolio investors due to the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $940, while the Census ACS reports an average market rent of $811. This creates a gap of $129, or approximately 15.9%, between what voucher holders can pay and the prevailing rental rates.
Given that the FMR exceeds the market rent, it makes Fredericktown an attractive location for a yield play. Landlords who accept Section 8 vouchers can expect to receive a higher rent payment than the typical market rate. The difference, $129 per month, translates into a significant boost in rental income without the usual risks associated with higher rents, such as vacancy or delinquency.
In the context of Fredericktown, where 26.9% of residents are renters and the median home value stands at $170,866, the median household income of $54,747 suggests that many local residents may rely on assistance programs like Section 8 to afford housing. By accepting vouchers, landlords can capitalize on the federal government's willingness to cover a larger portion of the rent, effectively subsidizing the gap between what tenants can afford and the higher FMR.
However, it's important to note that while the FMR is higher than the market rent, landlords should be aware of the administrative aspects of managing voucher tenants. These include maintaining properties to certain standards, undergoing inspections, and sometimes dealing with slower rent payments due to the bureaucratic processes involved in voucher administration. Despite these considerations, the financial benefits of accepting Section 8 vouchers in Fredericktown outweigh the costs, making it a strategic choice for maximizing returns on rental investments.
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.