Section 8 Fair Market Rent (FMR) for ZIP 64848 - 2027
Location: Lawrence County, MO | Metro: Joplin, MO HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $820 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$97,796
To determine if a landlord should buy in ZIP code 64848 for Section 8 investment, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
Does the Fair Market Rent (FMR) of $800 cover the debt service on a property valued at $297,241?
- No. The FMR of $800 does not provide sufficient income to cover the debt service on a property of that value. This means the rental income would be insufficient to meet mortgage payments and other expenses associated with owning the property. Do not proceed with purchasing in this area for Section 8 purposes.
- Yes. If the FMR of $800 does cover the debt service, move to the next step.
- It Depends. Further analysis is required to assess the specific terms of the mortgage and other costs. Consult a financial advisor to confirm the viability of this investment based on the given FMR.
Step 2: Market Rent vs. FMR
Is the market rent above, at, or below the FMR of $800?
- Above. If the market rent exceeds the FMR, landlords may find it challenging to secure Section 8 tenants who are only eligible up to the FMR. Consider the potential vacancy rate and whether the difference between market rent and FMR justifies the investment.
- At. If the market rent matches the FMR, this indicates a balanced market where Section 8 tenants can afford the rent. Proceed with confidence that the property will be rented at the FMR without significant vacancy concerns.
- Below. If the market rent is below the FMR, landlords could potentially attract Section 8 tenants easily. However, ensure the lower market rent still meets the DSCR requirements established in Step 1.
Step 3: Demand Analysis
Are 1.7% of the population renting and the average days on market (DOM) for properties in this ZIP code sufficient to support demand?
- Yes. With 1.7% of the population as renters and assuming the DOM is reasonable, there appears to be adequate demand for rental properties in this area. This supports the feasibility of finding Section 8 tenants.
- No. If the percentage of renters is low and the DOM is high, the demand for rental properties, including those suitable for Section 8, is likely insufficient. This makes the investment less attractive due to potential vacancies and longer wait times for tenancy.
- It Depends. The 1.7% of renters and the unspecified DOM require additional context. Investigate local economic conditions, job availability, and any recent changes affecting the housing market. High DOM might indicate a temporary market condition or seasonal fluctuations that could impact long-term investment viability.
Based on these steps, landlords must carefully consider the financials and market conditions before deciding to invest in ZIP 64848 for Section 8 properties.
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.