Location: Nodaway County, MO | Metro: Atchison County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 64487 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $890 per month for fiscal year 2026. In contrast, the local market rent, according to the Census ACS, is $658. This discrepancy can be explained by understanding how the voucher system operates.
A landlord should know that the voucher payment is not simply the SAFMR amount. Instead, it's calculated based on the lower of the SAFMR or the actual rent of the unit, plus any applicable utility allowances. For ZIP 64487, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,800 (a common figure for this region), the tenant would pay around $540 towards rent. The remaining balance, up to the SAFMR, is covered by the housing authority.
In practice, here's how it works:
If the actual rent is below the SAFMR, say at $700, the housing authority will cover the difference between the tenant's contribution ($540) and the actual rent ($700), which comes to $160.
If the actual rent is exactly at the SAFMR, the housing authority will cover the difference between the tenant's contribution ($540) and the SAFMR ($890), which comes to $350.
It's important to note that utility allowances are separate and do not affect the calculation of the rent subsidy. These allowances can vary but typically range from $200 to $300 per month depending on the type of utilities included.
Given these specifics, a landlord in ZIP 64487 can expect a reimbursement gap when renting a two-bedroom apartment at market rates. If you charge the local market rent of $658, the housing authority will cover the difference between the tenant's $540 contribution and the $658 rent, which is $118. However, if you charge the SAFMR rate of $890, the gap increases to $350, reflecting the difference between the market rent and the SAFMR.
In conclusion, landlords in ZIP 64487 who rent a two-bedroom apartment at the local market rate of $658 will receive a surplus of $118 per month from the housing authority. Those who charge the higher SAFMR rate of $890 will face a reimbursement gap of $350 per month, unless they are able to collect the full SAFMR from the tenant and the housing authority.
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.