Location: Laclede County, MO | Metro: Dallas 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 | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $135,591 | 0.75% | D |
| 3BR | $1,350 | $228,238 | 0.59% | F |
| 4BR | $1,680 | $313,846 | 0.54% | F |
| 5BR | $1,949 | $436,434 | 0.45% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 65536 (Lebanon, MO) for Section 8 purposes, follow this decision tree:
1) Does FMR $800 (zip FY 2024) clear debt service on a $228,892 property?
If your debt service (including mortgage payments, taxes, insurance, and maintenance) is less than $800 per month, then the answer is yes. For example, if a $228,892 property has a monthly debt service of $700, the Fair Market Rent (FMR) of $800 would cover these costs and leave room for profit.
If your debt service exceeds $800, the answer is no. For instance, if the monthly debt service is $900, the $800 FMR would not be sufficient to cover your expenses, leading to a financial loss.
2) Is market rent $829 (ZORI) above, at, or below FMR?
If the Zillow Observed Rent Index (ZORI) of $829 is above the FMR of $800, then the market is favorable for non-Section 8 tenants, but it also means that Section 8 vouchers may not cover the full rent, potentially reducing the pool of available tenants.
If the ZORI is exactly at the FMR, then the market rent aligns perfectly with the amount covered by Section 8 vouchers, making it an ideal scenario for both types of tenants.
If the ZORI is below the FMR, then the market rent is lower than what Section 8 covers, which can be advantageous for attracting tenants and ensuring full rent coverage.
3) Are 32.5% renters + 59-day DOM enough demand?
The percentage of renters in Lebanon, MO is 32.5%, and the days on market (DOM) average is 59 days. This indicates moderate demand for rental properties. If you can find a property that meets the criteria of the first two questions, then the demand is likely sufficient for Section 8 tenants.
If the DOM is significantly higher than 59 days, it suggests low demand, making it harder to find tenants, even with the Section 8 program. In such cases, the answer would be no.
If the DOM is lower than 59 days, it suggests high demand, making it easier to fill vacancies. In this case, the answer would be yes, provided the other conditions are met.
The final decision will depend on the intersection of these factors. If the FMR clears your debt service and the market rent is at or below the FMR, with a reasonable DOM, then buying in ZIP 65536 for Section 8 is a viable option. Otherwise, it depends on how you balance the risks and rewards based on the specific numbers involved.
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.