Location: Morgan 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 | $770 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $267,657 | 0.39% | F |
| 3BR | $1,380 | $380,174 | 0.36% | F |
| 4BR | $1,410 | $527,907 | 0.27% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Gravois Mills, MO (ZIP 65037), might raise several concerns regarding the feasibility of investing in the area through the lens of Section 8 housing. Here's an analysis addressing those points:
Will FMR $960 (metro FY 2026) cover the mortgage on a $341,212 home?
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960. To determine if this amount can cover the mortgage on a home valued at $341,212, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $341,212 home would be approximately $1,830, including principal, interest, taxes, and insurance. The $960 FMR falls short of covering this mortgage payment. Therefore, relying solely on Section 8 rental income would not be sufficient to meet the financial obligations of owning a property priced at this level.
Is there enough renter demand at 12.5%?
The percentage of renters in Gravois Mills, MO, stands at 12.5%. This figure suggests that while there is some demand for rental properties, it is relatively low compared to urban areas where rental demand is often higher. However, the low percentage does not necessarily indicate a lack of demand; it could simply reflect a smaller population base. To gauge whether this demand is sufficient, one must also consider the vacancy rate and the number of Section 8 households in the area. If these factors align favorably, the 12.5% of renters could still represent a viable market segment for Section 8 investments.
Will vouchers keep pace with $802 market rents?
The average market rent in Gravois Mills, MO, is $802 per month. The question of whether Section 8 vouchers will keep pace with this market rent hinges on the historical trends and future projections of voucher amounts. While the data does not provide specific figures on how much Section 8 vouchers have increased or are projected to increase, it is important to note that the Housing Choice Voucher program adjusts its payment standards annually based on local market conditions. In fiscal year 2026, the FMR is $960, which is higher than the current market rent of $802. This suggests that vouchers should theoretically cover the market rent, though actual payment standard increases may vary. Investors should monitor local housing authority announcements for precise adjustments.
In conclusion, while Gravois Mills, MO, presents challenges such as insufficient rental income to cover high mortgage payments on a $341,212 home, it also offers opportunities in a niche market with specific demand. The adequacy of Section 8 vouchers relative to market rents is promising but requires ongoing attention to ensure alignment with increasing costs.
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.