Location: Stoddard County, MO | Metro: Stoddard County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 63825 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $900 per month for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for such an apartment in this specific ZIP code.
In contrast, the local market rent for a two-bedroom unit in ZIP 63825 averages $773 according to the Census ACS (American Community Survey) data. This discrepancy between the SAFMR and the actual market rent means that landlords can expect a certain level of financial support that exceeds the average rental price in the area.
A voucher holder is required to contribute a portion of their income towards the rent. Typically, this contribution is 30% of the household's adjusted monthly income. Once this tenant portion is paid, the remainder is covered by the voucher, up to the SAFMR limit. For example, if a tenant's contribution is $200 based on their income, the voucher would cover the difference, paying $700 directly to the landlord.
In addition to covering the rent, vouchers also provide utility allowances. These allowances vary depending on the number of bedrooms and the region but generally aim to cover the cost of utilities such as electricity, water, and gas. For ZIP 63825, these allowances are part of the overall reimbursement package but do not affect the calculation of the rent subsidy.
Given the SAFMR of $900 and the average market rent of $773, landlords in ZIP 63825 should anticipate a surplus when renting to tenants with Section 8 vouchers. This surplus occurs because the voucher payment often exceeds the local market rent, providing a buffer that can help cover any unexpected costs or maintenance expenses.
To summarize, landlords in ZIP 63825 who rent to tenants using Section 8 vouchers can expect a reimbursement of up to $900 per month for a two-bedroom apartment, which typically covers the tenant's portion plus the remaining rent. With the local market rent at $773, landlords will usually see a surplus of approximately $127 per month, assuming the tenant's portion remains constant. This makes Section 8 tenancy financially viable and sometimes advantageous compared to market-rate rentals.
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.