Location: Daviess County, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
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 | $1,070 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $155,878 | 0.86% | C |
| 3BR | $1,730 | $252,484 | 0.69% | D |
| 4BR | $2,050 | $289,834 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 64429, which encompasses Cameron, MO, is centered around the discrepancy between the Fair Market Rent (FMR) set at $1110 for fiscal year 2024 and the actual market rent reported at $1,067 based on the latest Census ACS data. This creates a gap of $43, or approximately 3.8%, where the FMR exceeds the market rent.
This scenario positions voucher tenants as a yield play for landlords and small-portfolio investors. The higher FMR rate ensures that landlords receive a consistent, government-backed rental income that surpasses the current market rate. This can be particularly beneficial in a market where the majority of residents are renters, accounting for 34.7% of the population in Cameron, MO.
The median home value in Cameron, MO, stands at $248,336, indicating a mix of homeowners and renters. However, the median income of $68,708 suggests that many residents may struggle to afford market-rate rents without assistance. Thus, the Section 8 program serves as a vital financial support mechanism, allowing lower-income individuals to secure housing at rates they can manage.
For investors, this means that while the upfront investment might be substantial given the median home values, the steady income from voucher tenants can provide a reliable cash flow. Moreover, the government payment structure mitigates the risk associated with tenant defaults, ensuring that landlords receive their rent on time every month.
In summary, the gap between the FMR and market rent in ZIP 64429 makes it a compelling opportunity for landlords and investors looking to maximize yields in a stable, government-supported rental environment. This is especially true in a community where a significant portion of the population relies on rental housing, and the economic conditions necessitate affordable housing solutions.
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.