Section 8 Fair Market Rent (FMR) for ZIP 65109 - 2027

Investment Score for ZIP 65109

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$780
2 Bedrooms	$1,020
3 Bedrooms	$1,410
4 Bedrooms	$1,640
5 Bedrooms	$1,902
6 Bedrooms	$2,130
7 Bedrooms	$2,300
8 Bedrooms	$2,415

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,020	$219,696	0.46%	F
3BR	$1,410	$269,338	0.52%	F
4BR	$1,640	$364,454	0.45%	F
5BR	$1,902	$476,280	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 65109 (Jefferson City, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 65109 in Jefferson City, Missouri, is set by HUD for 2026. For a two-bedroom unit, the FMR is $950 per month. This amount represents 15.3% of the median household income in the area, which stands at $74,694. However, the actual rental market in this ZIP code is significantly higher. The Zillow median price for a two-bedroom rental property is $212,137, translating to a monthly rent that is approximately 18.6 times the FMR. This means that the actual rent for a two-bedroom unit would be around $17,710 per month ($950 x 18.6), which is far beyond the FMR limit. This disparity creates significant constraints for voucher holders. They are likely to struggle finding units that fall within the FMR guidelines, especially for larger units like three-bedroom or four-bedroom apartments. The FMR for a three-bedroom unit is $1,320, and for a four-bedroom unit, it is $1,440. These figures are still much lower than what the market demands, making it challenging for tenants to find suitable housing. #### Affordability & Renter Profile ZIP code 65109 has a population of 41,145, with 33.3% of residents being renters. This indicates a substantial rental market, but the occupancy rate of 94.4% suggests that the market is quite tight. Given the high price-to-FMR ratio of 18.6x, it is clear that the rental market is not affordable for many low-income households who rely on Section 8 vouchers. The median household income of $74,694 implies that the typical resident is middle-class, but the high rent prices make it difficult for those earning below the median income to afford housing. The FMR for a two-bedroom unit is only $950, which is a small fraction of the median income, indicating that the rental market is skewed towards higher-end properties. This tight market makes it challenging for voucher holders to find affordable units, as landlords may prefer higher-paying tenants who do not require government subsidies. #### Investor Angle From an investor perspective, the ZIP code 65109 presents a mixed picture. While the median home value is high at $212,137, the FMR is significantly lower. A two-bedroom unit renting at the FMR of $950 per month would generate a monthly cash flow that is far below the market rate. The price-to-FMR ratio of 18.6x suggests that the investment grade is relatively low for properties rented at FMR levels. Investors looking to maximize returns would likely find better opportunities in areas where the FMR is closer to market rates. However, there is potential for investors who can manage properties effectively and are willing to work within the constraints of the Section 8 program. The high occupancy rate of 94.4% indicates strong demand for rental properties, which could provide stability in terms of tenant retention. Nevertheless, the limited number of units available at FMR levels means that competition among voucher holders is fierce, and landlords must be prepared to navigate the complexities of the Section 8 program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $720, which is still well below the market rate but might offer more opportunities for finding affordable units. This strategy could help investors avoid the steep price increases associated with larger units while still benefiting from the strong rental demand. 2. **Consider Location-Specific Strategies**: Within ZIP code 65109, certain neighborhoods may have more affordable rental options. Investors should conduct detailed neighborhood analyses to identify pockets where the rental prices are closer to the FMR. For example, areas near public transportation, schools, or other amenities might have more affordable units due to higher demand from families and individuals seeking these conveniences. 3. **Engage with Local Housing Authorities**: To ensure a steady stream of tenants, investors should establish relationships with local housing authorities. This can help them understand the specific needs of voucher holders and potentially secure long-term leases. Additionally, working closely with housing authorities can provide insights into upcoming changes in the FMR and how they might impact the rental market. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 65109 presents a challenging environment. The high price-to-FMR ratio and tight rental market make it difficult to find properties that are both affordable and profitable. Therefore, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they can find niche opportunities in smaller units or specific neighborhoods where rental prices are closer to the FMR. Otherwise, the high market rates and limited availability of affordable units will likely result in poor cash flow and difficulty in securing tenants.

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.