Location: Butler County, MO | Metro: Butler County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 63932 reveals a significant gap 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, whereas the Census ACS reports an average market rent of $1,021. This represents a difference of $81, or approximately 8.6%, between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with accepting housing voucher tenants. Voucher tenants pay only a portion of their income towards rent, typically around 30%. In ZIP 63932, where the median income is $47,212, voucher tenants would contribute roughly $1,182 annually, or about $98.50 monthly towards rent. This means that the landlord would have to cover the remaining amount to reach the FMR of $940, resulting in a subsidy of approximately $841.50 per month.
This situation can affect profitability because the landlord must accept a rate that is below the open-market rent. For instance, if a unit rents for $1,021 on the open market but receives $940 through the voucher program, the landlord loses out on $81 per month in potential revenue. This discrepancy can be particularly challenging given that 41.9% of residents in ZIP 63932 are renters, indicating a high demand for rental properties but also suggesting that many residents might rely on assistance programs like Section 8 due to the relatively low median income.
In conclusion, while the Section 8 program provides a stable source of income for landlords, it does so at a rate that is significantly below the current market rent. This makes it a less attractive option for maximizing short-term cash flow. However, for those looking to maintain occupancy rates and support community stability, the program remains a viable option. Landlords must weigh the benefits of guaranteed tenancy against the reduced rental income when considering participation in the Section 8 program.
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.