Location: Randolph County, MO | Metro: Howard County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $670 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 65230 centers around the discrepancy between the Fair Market Rent (FMR) set at $800 and the actual market rent reported at $913 according to the latest Census ACS data. This gap amounts to $113, which is approximately a 14% difference. The lower FMR compared to the market rent suggests that landlords and small-portfolio investors who accept housing vouchers could face a financial disadvantage.
In this context, the 12.6% of residents who are renters and the median household income of $51,607 provide a backdrop against which to evaluate the attractiveness of Section 8 properties. With the median home value being unavailable, it's important to focus on rental dynamics and the financial realities faced by both landlords and tenants.
The cost of housing voucher tenants below open-market rates means that landlords must either reduce their profit margins or seek additional subsidies to offset the difference. This can be particularly challenging given the tight margins often associated with small-portfolio investments. However, the stability provided by the federal government backing these vouchers can offer a reliable source of income, despite the lower rate.
To illustrate, if a landlord rents out a property at the FMR of $800, they would be leaving $113 per month on the table compared to renting it at the market rate of $913. Over the course of a year, this shortfall amounts to $1,356. For many investors, this makes the decision to participate in the Section 8 program a strategic one, balancing the need for consistent cash flow with the potential for higher yields in the open market.
In summary, the gap between FMR and market rent in ZIP 65230 highlights the trade-offs involved for landlords and small-portfolio investors considering the Section 8 program. While accepting vouchers ensures a steady stream of rental income, it also requires an understanding of the financial implications of renting below market rates.
Data Sources: FMR data from HUD (2027). 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.