Location: Howard County, MO | Metro: Columbia, 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 | $810 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $318,553 | 0.37% | F |
| 3BR | $1,550 | $434,716 | 0.36% | F |
| 4BR | $1,820 | $597,015 | 0.3% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,150 for ZIP 65279 (Rocheport, MO) in fiscal year 2024 will be sufficient to cover the mortgage on a home priced at $435,826. According to the FMR Lookup Tool, the FMR for a two-bedroom unit in Rocheport is indeed $1,150. However, this figure represents the maximum amount that a Section 8 voucher holder can pay towards rent, not necessarily the amount that will cover a mortgage. To fully address this concern, one must consider the local mortgage interest rates and the specific terms of the loan. Without these details, it's impossible to definitively state whether this FMR will cover the mortgage.
The investor may also doubt the strength of the renter demand at 11.8%. RentalSource indicates that there are currently 93 houses available for rent near Rocheport, with rental rates ranging from $550 to $3,200. This suggests a diverse rental market, but the percentage of renters who qualify for Section 8 is another critical factor. At 11.8%, the demand appears modest, but it's important to note that the number of available units does not necessarily correlate with the number of qualified renters. The data does not provide a direct measure of the number of Section 8 eligible renters in Rocheport, so while the rental market seems active, the specific demand for subsidized housing remains uncertain.
Another objection could be whether the vouchers will keep pace with the $1,125 market rents. Zillow reports the average rental price in Rocheport as $1,800, while Trulia states it's $1,200. The FMR of $1,150 is close to the reported market rent of $1,125, indicating that vouchers should generally cover the cost of renting a typical two-bedroom unit. However, if the market rents increase significantly, the FMR may lag behind due to its annual update cycle. This could lead to situations where the voucher amount is insufficient to cover the rent on higher-priced units. Therefore, while the current FMR aligns reasonably well with market rents, future increases in market rents could pose challenges.
In conclusion, while the data provides insights into the rental market and the potential coverage of mortgages by FMR, it does not fully address all concerns. The rental market in Rocheport appears active, but the specific demand for Section 8 vouchers is less clear. The current FMR is adequate for covering typical market rents, but investors should remain vigilant about future market trends and the pace of FMR updates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.