Location: Holt County, MO | Metro: Atchison County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 64437 is centered around the 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 $1,070, whereas the Census ACS reports the average market rent at $810. This creates a gap of $260, which represents an increase of approximately 32% over the market rent.
Given that the FMR exceeds the market rent, this scenario presents a unique opportunity for landlords and small-portfolio investors. Voucher tenants can offer a higher yield on investment properties due to the government's willingness to pay up to the FMR for eligible units. In ZIP 64437, where only 16.7% of residents are renters and the median income stands at $51,667, the demand for affordable housing is evident. The lack of a reported median home value suggests that homeownership might be less prevalent or accurately measured in this area, further emphasizing the importance of rental housing.
The higher subsidy rate allows landlords to achieve better rental yields without necessarily increasing their property management costs. This means that even though the market rent is lower, landlords can still receive payments closer to the FMR through the Section 8 program. For investors, this can translate into a more attractive return on investment, especially when compared to the typical market rent of $810.
However, it's important to note that accepting voucher tenants comes with its own set of considerations. Landlords must adhere to HUD standards and undergo inspections, which can affect the overall cost of maintaining a property. Despite these requirements, the financial incentive provided by the FMR makes this ZIP code a prime location for those interested in leveraging the Section 8 program to enhance their rental income.
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.