Location: Moniteau County, MO | Metro: Cooper County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 65287 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 65287 in fiscal year 2024 is set at $900, while the market rent remains unspecified due to limited data. This lack of specificity in market rent figures suggests that the area might have a less developed rental market or that recent data is sparse.
In the context of ZIP 65287, where 12.3% of residents are renters and the median household income is $94,143, the FMR serves as a critical benchmark. Given that the median home value is not available, it's important to focus on the income dynamics and the rental market's structure.
When the FMR exceeds the market rent, as it likely does in ZIP 65287, it can be a strong indicator for landlords and small-portfolio investors to consider voucher tenants as a reliable source of income. Voucher tenants provide a steady stream of payments guaranteed by the government, making the property a yield play. The difference between the FMR and market rent translates into a lower risk of vacancy and a predictable cash flow, which is essential for maintaining positive returns on investment.
However, if the market rent were higher than the FMR, landlords would face a different challenge. They would need to absorb the cost of renting units below the open-market rate, potentially reducing their profit margins. In such a scenario, the decision to accept voucher tenants would depend on the landlord's tolerance for lower yields and their assessment of the broader economic benefits, such as stable occupancy and reduced maintenance costs.
Given the limited data on market rent, the FMR of $900 stands out as a key figure for evaluating potential investments in ZIP 65287. It ensures that landlords receive a payment close to the market rate, even if it's not precisely defined, thereby making voucher tenants a viable option for maintaining a healthy investment portfolio.
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.