Location: Scott County, MO | Metro: Mississippi 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 | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $128,492 | 0.99% | C |
U.S. Census Bureau data (2024)
In ZIP code 63823, the economics of Section 8 housing can be quite straightforward when understood properly. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $890 per month for fiscal year 2026. This is the maximum amount that the Housing Choice Voucher program will pay towards rent. However, it's important to note that the local market rent for a similar unit is lower, at $707 according to the latest Census ACS data.
A landlord participating in the Section 8 program should understand how the total rent payment is structured. The voucher payment consists of two main parts: the tenant portion and the utility allowance. The tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for tenants in this area, the tenant portion would typically be around $210 per month, based on a median income figure. Utility allowances vary but generally provide additional funds to cover electricity, gas, water, and sewer costs. For a two-bedroom apartment, the utility allowance might be approximately $150 per month.
To calculate the actual reimbursement a landlord receives, add the tenant portion ($210) and the utility allowance ($150) to the voucher payment. In this case, the voucher payment would be capped at $890. Thus, the total reimbursement a landlord would receive is $890, which includes both the tenant's contribution and the utility allowance.
Given that the local market rent is $707, there is a surplus when comparing the SAFMR to the market rate. This means that even if the market rent is lower, landlords can still benefit from the higher reimbursement rates provided by the Section 8 program. The surplus in this case is $183 per month ($890 - $707).
It's crucial for landlords to ensure that their rental units meet the quality standards set by the housing authority to qualify for these higher reimbursement rates. Additionally, landlords must understand that while the SAFMR sets a cap on what the government will pay, they can negotiate the tenant's portion and utility allowances within the parameters of the program.
In summary, landlords in ZIP 63823 can expect a monthly reimbursement of $890 for a two-bedroom apartment under the Section 8 program. With the local market rent at $707, this results in a surplus of $183 per month, providing a financial advantage over market-rate rentals.
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.