Location: St. Clair County, MO | Metro: Benton 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 | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $154,876 | 0.62% | D |
| 3BR | $1,150 | $239,676 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 64776 in Missouri reveals a significant gap between the Fair Market Rent (FMR) set at $890 for the fiscal year 2026 and the actual market rent of $688 as reported by the Census ACS. This difference amounts to $202 per month, representing approximately 29% of the market rent. Given that the FMR exceeds the market rent, this scenario presents an opportunity for landlords and small-portfolio investors to focus on yield through the Section 8 program.
The higher FMR compared to the market rent means that voucher tenants can cover a larger portion of the monthly rent, potentially leading to higher yields for landlords. In the broader context of Missouri, where 26.2% of residents are renters, the median home value stands at $221,619 and the median income is $44,880. These figures underscore the financial benefits of accepting Section 8 vouchers, as it allows landlords to receive a stable and government-backed rental income that exceeds what they would typically receive from the open market.
However, the decision to accept Section 8 tenants should be made with consideration of the administrative requirements and potential delays in receiving rent payments. Despite these challenges, the financial advantage of closing the gap between FMR and market rent makes this a strategic play for increasing returns on investment in the rental market. Landlords must weigh the benefits of a guaranteed income against the costs associated with managing housing voucher tenants, who may pay less than the open-market rate but provide stability and predictability.
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.