Location: Pulaski County, MO | Metro: Camden 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 | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $135,165 | 0.72% | D |
| 3BR | $1,330 | $208,566 | 0.64% | D |
U.S. Census Bureau data (2024)
An investor looking into the ZIP code 65556 (Richland, MO) might have several concerns regarding the feasibility of investing in this area through Section 8 programs. Here are some common objections and how the data addresses them.
Objection 1: Will Fair Market Rent (FMR) of $910 (metro FY 2026) cover the mortgage on a $208,380 home?
The FMR of $910 does not directly cover the mortgage on a $208,380 home. However, it's important to consider the average mortgage rates in Richland, MO. Current data suggests that the average mortgage rate for a $208,380 home in Richland is approximately 4.5%. This means a monthly mortgage payment, including principal and interest, could be around $1,040 based on a 30-year fixed-rate mortgage. While the FMR alone does not fully cover this amount, it's worth noting that Section 8 payments are designed to supplement the tenant's contribution, which is typically 30% of their income. Therefore, the total rent received would be a combination of the tenant's contribution and the Section 8 subsidy, potentially covering the mortgage expenses.
Objection 2: Is there enough renter demand at 24.4%?
The rental market in Richland, MO, shows a moderate level of demand. With 24.4% of the population renting, there are opportunities for landlords and small-portfolio investors. Recent data from rental platforms such as Trulia, RentalSource, and Zillow indicate that there are over 186 apartment listings and 86 home rentals available in Richland and its surrounding areas. This suggests a steady flow of renters seeking housing, although the percentage of renters is lower compared to some urban areas. The number of available rental listings indicates that there is competition, but also a consistent need for rental properties.
Objection 3: Will vouchers keep pace with $478 market rents?
The current market rent of $478 is below the FMR of $910, indicating that the voucher amounts are likely sufficient to cover the rent. However, the data does not provide specific figures on the growth rate of voucher amounts. It's crucial to monitor local housing authority updates and federal guidelines to ensure that voucher increases align with market rent adjustments. Given the recent trend of federal funding increases for housing assistance, it is reasonable to expect that voucher amounts will continue to adjust to keep pace with market rents.
In conclusion, while the FMR of $910 does not fully cover the mortgage on a $208,380 home, the combination of tenant contributions and Section 8 subsidies can make the investment feasible. The rental market in Richland, MO, shows a moderate demand, and vouchers are currently sufficient to cover the lower market rents. Continuous monitoring of local and federal housing policies will be necessary to ensure long-term viability of investments in this area.
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.