Section 8 Fair Market Rent (FMR) for ZIP 64724 - 2027

Location: St. Clair County, MO | Metro: Bates County, MO HUD Metro FMR Area

Investment Score for ZIP 64724

Monthly Rent (2BR)

$960

Median Price (2BR)

$118,878

1% Rule

0.81%

Annual Yield

9.69%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$740
2 Bedrooms	$960
3 Bedrooms	$1,160
4 Bedrooms	$1,460
5 Bedrooms	$1,694
6 Bedrooms	$1,897
7 Bedrooms	$2,049
8 Bedrooms	$2,151

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$960	$118,878	0.81%	C
3BR	$1,160	$184,046	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,999

Median Household Income

$49,338

Housing Units

949

Renter Percentage

31.5%

Occupancy Rate

86.5%

Renter Occupied

259

To determine if you should buy in ZIP 64724 (Appleton City, MO) for Section 8 investments, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $800 for fiscal year 2024 cover the debt service on a property valued at $177,676?

Yes. The FMR of $800 is sufficient to cover the debt service on a property valued at $177,676. Assuming an average interest rate of 5%, the annual mortgage payment would be approximately $10,000. This means the monthly mortgage payment would be around $833. Since the FMR covers this amount, you can proceed to the next step.
No. The FMR does not cover the debt service on a property valued at $177,676. Given the current FMR, purchasing a property of this value would not be advisable under Section 8 guidelines.

Step 2: Compare the market rent of $544 (based on Census ACS data) with the FMR of $800.

Market Rent Below FMR. At $544, the market rent is below the FMR of $800. This indicates that the property could potentially be rented out at the higher FMR rate, making it a favorable investment opportunity for Section 8.
Market Rent Equal to or Above FMR. If the market rent were equal to or above the FMR, then the property might not offer additional financial benefit beyond what is already available in the market. However, since the market rent is lower, it suggests a positive margin for Section 8 participation.

Step 3: Evaluate the rental demand in Appleton City, MO. With 31.5% of residents being renters and the days-on-market (DOM) status marked as N/A, indicating either a lack of data or a very quick rental market, the demand appears to be stable.

It Depends. While the percentage of renters is a solid indicator of demand, the absence of DOM data makes it difficult to provide a definitive answer. If you can find evidence of a quick rental market, the high demand would support a positive investment decision. Otherwise, further investigation into local rental trends is necessary.

In conclusion, if the FMR of $800 covers the debt service on a $177,676 property and the market rent is below this figure, the investment is likely viable for Section 8. However, the stability of rental demand requires verification, particularly regarding the speed at which properties are rented. Conducting a deeper analysis of local rental market conditions will clarify whether the investment is worthwhile.

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.