Location: Cooper County, MO | Metro: Cooper 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 | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $157,214 | 0.62% | D |
| 3BR | $1,290 | $234,102 | 0.55% | F |
| 4BR | $1,400 | $301,267 | 0.46% | F |
U.S. Census Bureau data (2024)
In Boonville, Missouri, specifically ZIP code 65233, the economics of Section 8 housing can be quite favorable for landlords when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $850. This SAFMR is the maximum amount that the Housing Choice Voucher program will pay towards rent for a unit in this area.
The local market rent for a two-bedroom apartment, according to the Census ACS, is $792. This means that the SAFMR is slightly above the average market rent, which is beneficial for landlords who participate in the Section 8 program. Landlords can expect the government to cover up to $850 of the rent, provided that the rental unit meets the quality standards set by the program.
A Section 8 voucher works by covering a portion of the rent, with the tenant responsible for paying the remainder. Typically, the tenant pays about 30% of their adjusted income towards rent. In addition to the base rent, there are also utility allowances that can be factored into the total reimbursement. For ZIP 65233, the utility allowance for a two-bedroom unit is set at $250.
This means that if a landlord charges $850 for rent and includes utilities, the government will reimburse the landlord up to $850 for the rent and $250 for utilities, totaling $1,100. However, the tenant's portion must be considered. If the tenant's share is less than the difference between the market rent and the SAFMR, the landlord may end up with a surplus. Conversely, if the tenant's share is higher, it could result in a reimbursement gap.
To illustrate, let's assume a landlord charges $850 for rent and $250 for utilities, making the total $1,100. If the tenant's portion based on their income is $250, then the total paid would be $1,100, which is exactly what the landlord charged. But if the tenant's portion is $100, the landlord would receive $750 from the government plus $100 from the tenant, resulting in a total of $850, a $250 surplus compared to the local market rent of $792.
If the landlord sets the rent at the market rate of $792 and includes utilities, the total would be $1,042. With a tenant portion of $100, the landlord would receive $792 from the government plus $100 from the tenant, resulting in a total of $892, a $50 surplus.
However, if the landlord sets the rent higher, say at $900, and includes utilities, the total would be $1,150. With a tenant portion of $100, the landlord would only receive $850 from the government plus $100 from the tenant, resulting in a total of $950, leaving a $200 reimbursement gap.
Thus, landlords in ZIP 65233 should carefully consider setting their rents to take advantage of the SAFMR while ensuring they do not overcharge to the point where they face a significant reimbursement gap. By aligning with the SAFMR and understanding the utility allowances and tenant contributions, landlords can optimize their income from Section 8 vouchers.
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.