Location: Moniteau County, MO | Metro: Jefferson City, MO HUD Metro FMR Area
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 | $850 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $244,939 | 0.46% | F |
| 3BR | $1,550 | $347,795 | 0.45% | F |
| 4BR | $1,790 | $406,301 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 65023 in Centertown, Missouri, reveals a competitive landscape where cash flow is a primary concern for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $860 per month for the fiscal year 2024. In comparison, the Census American Community Survey (ACS) indicates that the market rent in the same area is $953 per month. This suggests that voucher tenants will only cash flow marginally at the HUD FMR, with landlords needing to consider the additional costs associated with maintaining rental properties.
To further understand the investment potential, we can look at the median home value in the area, which stands at $320,799. By calculating the rent-to-price ratio using the market rent of $953, we find that the ratio is approximately 1.1%, indicating a relatively low return on investment when compared to purchasing a home. However, this ratio does not account for the potential long-term benefits of rental income stability and property value appreciation.
The dynamics between renting and buying in this market are influenced by the limited availability of data regarding the median days on market (DOM) and the percentage of homes that experience price cuts. These metrics are currently not available, but they would provide insight into the speed and ease of selling homes in the area. For now, it's important to note that the current rental market conditions make it challenging for landlords to rely solely on cash flow for profitability.
The strongest investor angle in this market is likely to be stability. With a consistent demand for affordable housing and the federal backing of Section 8 vouchers, investors can expect steady rental income over time. While the immediate cash flow may be modest, the long-term stability and potential for property value appreciation offer a compelling case for investing in the Centertown, MO, HUD Metro FMR Area.
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.