Location: New Madrid County, MO | Metro: New Madrid County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 63860 are governed by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2026 is $900. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent on behalf of eligible tenants.
To understand how this impacts landlords, it's important to break down the components of the voucher payment. The tenant is responsible for paying approximately 30% of their adjusted income toward rent, which can vary depending on individual circumstances. In addition to the base rent covered by the voucher, there are also utility allowances. These allowances vary but typically cover a significant portion of the tenant's monthly utility costs, ensuring that the total living expense remains manageable for them.
The SAFMR being set at $900 means that landlords cannot charge more than this amount for a two-bedroom unit if they wish to participate in the Section 8 program. If the local market rent for similar units is higher than the SAFMR, landlords may face a reimbursement gap. However, since the local market rent is currently not available, we can only work with the SAFMR figure to determine potential outcomes.
A typical scenario would involve a landlord setting the rent at the maximum allowable rate of $900. The tenant would then pay their portion based on their income, and the government would cover the remainder up to this limit. If the actual market rent for a two-bedroom apartment in ZIP 63860 exceeds $900, the landlord would need to absorb the difference, resulting in a financial shortfall. Conversely, if the market rent is lower than $900, landlords could potentially see a surplus, meaning they receive more than the average market rate due to the fixed SAFMR.
To illustrate, if a landlord charges $900 and the tenant's portion is $270 (assuming a 30% contribution), the government would pay the remaining $630. This calculation does not include any utility allowances, which would be additional payments made directly to the tenant. Therefore, the total reimbursement received by the landlord would be the sum of the government's contribution and the tenant's share.
In conclusion, the SAFMR for ZIP 63860 is $900 for a two-bedroom apartment, representing the ceiling for government subsidies. Landlords must carefully consider whether this rate aligns with their financial goals and the local rental market conditions. Without specific data on local market rents, it's impossible to quantify the exact reimbursement gap or surplus, but landlords should expect a discrepancy between the SAFMR and the prevailing market rates.
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.