Location: Jefferson City, 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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,840 | $351,821 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 65076 might question whether the Fair Market Rent (FMR) of $800 for the fiscal year 2024 will sufficiently cover the mortgage on a home priced at $324,738. The FMR is designed to reflect the 40th percentile of gross rents for standard-quality rental units, meaning that 60% of the homes in the area are rented out for more than this amount. To determine if the FMR covers the mortgage, one must consider the specific mortgage terms, including interest rates and loan length. However, based on historical data, an FMR of $800 would typically cover a portion of the monthly mortgage payment but likely not the entirety, especially when factoring in property taxes, insurance, and maintenance costs.
The second objection could be whether there is sufficient renter demand in ZIP 65076, given that only 19.3% of the population are renters. This percentage indicates a relatively low demand for rental properties compared to other areas. However, it's important to note that even a low percentage can represent a significant number of potential tenants, particularly if the area has a growing workforce or is attractive to certain demographics. Additionally, the rental market's dynamics can change rapidly due to economic shifts, new job opportunities, or changes in housing policies.
Lastly, an investor might ask if the Housing Choice Voucher Program (Section 8) will keep up with the market rents, which currently stand at $1,229. The voucher program aims to ensure that families pay no more than 30% of their adjusted income toward rent. If the average voucher payment in the area is below the $800 FMR, it suggests that the program might struggle to cover the higher market rents of $1,229. This could result in fewer Section 8 tenants being able to afford homes in ZIP 65076. It's crucial to monitor the local housing authority's payment standards and any adjustments they make to accommodate rising market rents.
To summarize, while ZIP 65076 presents some challenges for Section 8 investors, such as the gap between FMR and market rents and the lower percentage of renters, these factors do not necessarily preclude profitability. Careful consideration of the specific mortgage terms and ongoing monitoring of local rental trends and voucher payment standards can help mitigate risks and inform investment decisions.
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.