Location: St. Joseph, MO | Metro: St. Joseph, MO-KS MSA
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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $316,635 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 64459 might raise several concerns regarding the feasibility of investing in Section 8 properties here. Let's address these objections directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $930 for ZIP 64459 in fiscal year 2024 cover the mortgage on a $274,305 home?
To determine if the FMR will cover the mortgage, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment on a $274,305 home would be approximately $1,470. This figure includes principal, interest, taxes, and insurance. Given that the FMR is $930, it is evident that the FMR alone does not cover the mortgage payment. However, landlords can potentially supplement this income with additional sources such as rental income from other units or by renting out extra space within the property.
Objection 2: Is there enough renter demand at 8.2%?
The occupancy rate of 8.2% suggests a relatively low demand for rental properties in ZIP 64459. This percentage indicates that only 8.2% of the total housing stock is rented out. While this might seem concerning, it also implies a significant opportunity for growth. Landlords could attract more tenants by offering competitive amenities and maintenance standards, or by targeting specific demographics such as students or young professionals who might benefit from the stability of Section 8 housing.
Objection 3: Will vouchers keep pace with the market rents in ZIP 64459?
The data does not provide specific information on how well vouchers keep up with market rents in ZIP 64459. However, historically, voucher payments have been adjusted periodically to reflect changes in market conditions. For landlords, the key is to ensure that the voucher amount aligns closely with the FMR and any additional costs they incur. It's advisable to monitor local HUD announcements and adjust expectations accordingly. If the voucher amount lags behind market rents, landlords might need to consider subsidizing the difference or finding ways to reduce operating costs.
In summary, while the FMR of $930 does not fully cover the mortgage payment on a $274,305 home, there are strategies to mitigate this shortfall. The low occupancy rate of 8.2% presents both a challenge and an opportunity for growth. Lastly, the lack of specific data on voucher adjustments means landlords should remain vigilant about local market trends and HUD policies.
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.