Location: Linn County, MO | Metro: Linn County, MO
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 | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $150,767 | 0.64% | D |
| 3BR | $1,150 | $220,308 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 64659, which encompasses Meadville, MO, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $890, while the Census ACS data indicates that the market rent is $610. This represents a gap of $280, or approximately 45.7%.
In this scenario, where the FMR exceeds the market rent, landlords can leverage the Section 8 program to enhance their investment yields. The higher FMR compensates landlords for renting properties at rates above what the open market would typically bear. This makes it an attractive option for those looking to maximize returns on their rental properties in Meadville, MO.
Given that only 21.0% of the population are renters, the demand for rental properties is relatively low compared to owner-occupied homes. However, the presence of the Section 8 program can help stabilize occupancy rates and provide a steady stream of income. With a median home value of $205,475 and a median income of $73,698, the financial landscape of Meadville suggests that many residents might find it challenging to afford homeownership, thereby increasing the potential tenant pool for subsidized rentals.
The cost of housing voucher tenants below open-market rates is mitigated by the federal subsidy, ensuring landlords receive the full FMR of $890 per unit. This means that even though the market rent is lower at $610, landlords can still achieve a higher effective rental rate through the voucher program, making it a viable strategy for maximizing portfolio performance.
To summarize, the gap between the FMR and market rent in Meadville, MO, presents an opportunity for landlords to increase their rental yields by participating in the Section 8 program. The subsidy structure allows landlords to charge rents closer to the FMR, thereby enhancing profitability in a market where natural rent levels are lower.
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.