Location: Callaway County, MO | Metro: Callaway County, 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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $288,902 | 0.5% | F |
| 4BR | $1,710 | $358,621 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 65043 centers around the disparity between the Fair Market Rent (FMR) set at $1010 for fiscal year 2024 and the actual market rent reported at $1,028 according to the Census ACS. This represents a mere $18 difference, or approximately 1.77%, between the two figures.
Given that the FMR is slightly lower than the market rent, landlords and small-portfolio investors must be aware of the potential costs associated with housing voucher tenants at rates below the open-market levels. While the FMR provides a benchmark for rental assistance, it does not fully reflect the higher market rents that could be charged to non-voucher tenants. As such, landlords accepting Section 8 vouchers may experience a slight reduction in rental income per unit, which can impact overall portfolio yields.
However, the decision to accept Section 8 tenants should also consider broader economic factors. In ZIP 65043, only 18.0% of residents are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. The median home value stands at $280,238, suggesting a strong preference for homeownership among local residents. Additionally, the median household income is $85,308, which is above the national average, further supporting the inclination towards purchasing rather than renting.
Despite these indicators, the presence of Section 8 tenants can still be advantageous for certain investors. These tenants offer a stable and government-backed source of income, which can be particularly beneficial in areas where the rental market is less robust. The consistent cash flow provided by voucher programs can help mitigate risks associated with vacancy and delinquency, making it a strategic choice for those focused on long-term, steady returns over maximizing short-term rental revenue.
To summarize, while the FMR in ZIP 65043 is marginally lower than the market rent, the benefits of stable occupancy and government-backed payments may outweigh the slight reduction in rental income. For investors looking to capitalize on a yield play, Section 8 properties in this area can provide a reliable stream of income, especially when considering the broader economic context of the region.
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.