Section 8 Fair Market Rent (FMR) for ZIP 64118 - 2027

Investment Score for ZIP 64118

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,340
2 Bedrooms	$1,520
3 Bedrooms	$1,990
4 Bedrooms	$2,380
5 Bedrooms	$2,761
6 Bedrooms	$3,092
7 Bedrooms	$3,339
8 Bedrooms	$3,506

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,520	$214,297	0.71%	D
3BR	$1,990	$267,357	0.74%	D
4BR	$2,380	$346,221	0.69%	D
5BR	$2,761	$383,559	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 64118 (Gladstone, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Gladstone, MO (ZIP 64118) in 2026 is set at $1330 for a two-bedroom unit. This represents 21.4% of the median household income in the area, which stands at $74,740. However, the actual rent for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $209,145. The price-to-FMR ratio for a two-bedroom unit is 13.1x, indicating that the actual rental prices far exceed the FMR. This disparity creates significant constraints for voucher holders. While the voucher covers up to $1330 per month for a two-bedroom unit, landlords may be hesitant to accept vouchers due to the higher market rates. Additionally, voucher holders might struggle to find units that fit within their budget, especially if they need larger units such as three-bedroom ($1730) or four-bedroom ($2060) apartments. #### Affordability & Renter Profile With 40.6% of the population renting, the market has a substantial number of renters. Given the occupancy rate of 92.5%, it suggests that there is a high demand for rental properties, making it a tight market. The median household income of $74,740 indicates that many residents are middle-class workers, but the high price-to-FMR ratio means that the majority of renters would likely find it challenging to afford market-rate rentals without assistance. The high percentage of renters and the tight occupancy rate suggest that there is a strong demand for affordable housing options. However, the gap between FMR and actual rental prices makes it difficult for low-income families to secure housing without financial aid. This tight market dynamic could lead to increased competition among renters and potentially higher rents, further exacerbating affordability issues. #### Investor Angle From an investor perspective, the ZIP code 64118 is not cash-flow positive at the FMR levels. The actual rental prices are much higher than the FMR, meaning that landlords who accept Section 8 vouchers would be leaving significant revenue on the table. For example, a two-bedroom unit priced at $209,145 annually (approximately $17,429 monthly) would generate about $17,429 in annual rent, whereas the FMR of $1330 per month equates to only $15,960 annually. This difference of nearly $1,470 per month could make accepting vouchers less attractive for landlords. The investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors. The high price-to-FMR ratio and the potential for lower returns compared to market-rate rentals indicate that the risk-adjusted return on investment might not be favorable. Investors looking to maximize their returns might consider other areas where the FMR is closer to the actual rental prices. #### Specific Actionable Insights 1. **Target Larger Units**: Given the high FMR for larger units (three-bedroom at $1730 and four-bedroom at $2060), investors should focus on developing or acquiring larger units. These units are more likely to attract tenants who can afford the higher FMRs, thereby reducing the risk of vacancy. 2. **Consider Mixed-Income Developments**: To balance the tight market and the affordability challenges, investors might want to explore mixed-income developments. By offering a mix of Section 8 units and market-rate units, landlords can ensure a steady stream of income while still providing affordable housing options. 3. **Engage with Local Programs**: Investors should look into local programs that offer additional subsidies or incentives for landlords who accept Section 8 vouchers. This could help offset the lower returns and make the investment more attractive. #### Bottom Line For Section 8-focused investors, the ZIP code 64118 presents a challenging environment due to the high price-to-FMR ratio and the tight market conditions. The recommendation would be to **skip** this area unless investors can find ways to leverage larger units or engage in mixed-income developments. The current dynamics suggest that the potential for cash flow and overall profitability is limited, making it less favorable for those strictly targeting Section 8 vouchers.

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.