Location: Monroe County, MO | Metro: Monroe County, MO
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 | $850 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $138,317 | 0.83% | C |
| 3BR | $1,370 | $186,655 | 0.73% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into the real estate market in ZIP code 65275, Paris, MO, might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,090 (metro FY 2026) cover the mortgage on a $206,476 home?
The FMR of $1,090 per month does not automatically guarantee that it will cover the mortgage payments on a $206,476 home. The amount of monthly mortgage payment depends on factors such as the interest rate, loan term, and down payment. However, based on current average interest rates, a 30-year fixed-rate mortgage on a $206,476 home with a 20% down payment could result in monthly principal and interest payments around $600-$700. This means that the FMR can indeed cover the mortgage, but the investor must consider additional costs such as property taxes, insurance, and maintenance.
Objection 2: Is there enough renter demand at 23.2%?
The rental demand in ZIP 65275 stands at 23.2%, which is lower than the national average. This percentage indicates the proportion of households that rent rather than own their homes. A lower rental demand suggests a smaller pool of potential tenants. However, the demand for affordable housing under programs like Section 8 can still be strong, even in areas with low overall rental demand. The key here is understanding the local dynamics and the specific need for subsidized housing in Paris, MO. While the data does not provide a direct measure of the number of Section 8 applicants, the existence of the program itself implies a recognized need for affordable housing options.
Objection 3: Will vouchers keep pace with $763 market rents?
The question of whether vouchers will keep up with the market rents of $763 per month is critical. The FMR set by HUD for the area is $1,090, which is higher than the current market rent. This suggests that the voucher amounts are likely to be sufficient to cover the cost of renting a typical unit in the area. However, it is important to note that the actual voucher amount can vary based on household size and income. Investors should review the specific voucher amounts for different household sizes to ensure they align with the expected rental income. Additionally, any changes in voucher policies or funding levels could impact future rental income.
In summary, while the data provides insights into the financial aspects of investing in ZIP 65275 under the Section 8 program, some questions remain unanswered. The investor must carefully evaluate the local market conditions, tenant demographics, and the long-term outlook for the housing voucher program.
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.