Location: Laclede County, MO | Metro: Camden 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 | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $246,692 | 0.42% | F |
| 3BR | $1,430 | $325,532 | 0.44% | F |
| 4BR | $1,590 | $435,885 | 0.36% | F |
| 5BR | $1,844 | $613,740 | 0.3% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 65020, specifically Camdenton, MO, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $930, whereas the market rent, as indicated by ZORI (Zillow's Observed Rental Index), stands at $1,439. This represents a gap of $509, or approximately 54.7%, between what the government deems fair and what the open market demands.
In Camdenton, where only 19.9% of residents are renters, the median home value is $297,715 and the median income is $62,392. Given these figures, it is evident that landlords and small-portfolio investors in this area will face a substantial difference when renting to voucher tenants compared to open-market tenants. The FMR being lower than the market rent means that landlords accepting Section 8 vouchers must be prepared to accept a rental rate that is significantly below the average market price. This can translate into a financial challenge, especially when considering the maintenance costs and other expenses associated with property management.
While the median income suggests that many residents could afford higher rents, the relatively low percentage of renters indicates that homeownership is more prevalent. Therefore, landlords who decide to participate in the Section 8 program should carefully consider the financial implications of this gap. They might need to adjust their expectations regarding rental income yields and evaluate whether the benefits of long-term, stable tenancy outweigh the immediate reduction in revenue. Additionally, they should explore potential subsidies or incentives that may offset some of the financial burden of renting below market rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.