Location: Shannon County, MO | Metro: Oregon 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 | $690 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $118,102 | 0.81% | C |
| 3BR | $1,180 | $185,942 | 0.63% | D |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP code 65438, Birch Tree, MO, are significant. Tenant turnover is a critical issue, with the market rent at $559 being notably lower than the Fair Market Rent (FMR) of $890 for FY 2026 in the metro area. This discrepancy suggests that tenants might be more likely to leave once they find a place that better matches their financial capabilities, leading to higher turnover rates and instability.
Vacancy exposure is another concern. The data does not provide a specific number of days on the market (DOM), which can make it difficult to predict how long a property might remain vacant between tenants. A prolonged vacancy period can result in lost rental income, which can be particularly damaging for landlords who rely on steady cash flow.
Deferred maintenance is also a risk factor. With an average home value of $187,332 and a median income of $54,028, many homeowners may struggle to keep up with necessary repairs and upgrades, especially if they are renting out their properties. This can lead to substandard living conditions and potential violations of housing codes, which could result in fines or legal action against the landlord.
However, these risks must be weighed against the strong demand for rental properties. ZIP 65438 has a renter share of 7.8%, indicating a relatively high concentration of renters who may be interested in Section 8 vouchers. High renter density often translates into greater demand for affordable housing options, which can stabilize occupancy rates and mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 65438 makes it a moderate risk for a first-time Section 8 landlord. While there are clear dangers, the robust demand for rental units provides a buffer against some of the financial uncertainties.
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.