Location: Cape Girardeau, 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 | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $88,799 | 1.14% | B |
| 3BR | $1,400 | $140,921 | 0.99% | C |
| 4BR | $1,690 | $135,253 | 1.25% | A |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 63703 in Cape Girardeau, Missouri, for fiscal year 2024 is set at $870. This figure represents the payment standard for Section 8 vouchers, which means that the government will pay up to this amount on behalf of eligible tenants. However, it's important to note that this is not the rent you can charge; it's the maximum subsidy payment.
In comparison, the local market rent for ZIP 63703 is $913, according to the ZORI (Zillow Rent Index). This suggests that while your rental property must be priced reasonably, there is a slight premium over the FMR that landlords can potentially charge. The difference between the FMR and the actual market rent could mean you might have to cover a small portion of the tenant's rent, but it also indicates that there is some flexibility in pricing.
The 57.4% share of renters in the area signifies strong demand for rental properties. With nearly six out of ten residents renting, there is a robust market for Section 8 tenants looking for affordable housing. This high percentage of renters translates into a higher likelihood of finding interested and qualified tenants for your property.
When considering an acquisition cost, the median home value in the area is around $122,779. This figure helps you assess the potential investment required to purchase a property suitable for a Section 8 program. It's crucial to ensure that the acquisition cost aligns with the expected returns from the rental income and government subsidies.
Before proceeding with your first Section 8 rental in Cape Girardeau, make sure to verify that your property meets the Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants, and failing to meet them can result in disqualification from the program. Once you confirm that your property complies with HQS, you can confidently move forward with the application process.
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.