Location: Washington County, MO | Metro: Crawford 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 | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $217,358 | 0.6% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 65565 might have several concerns regarding the viability of investing in properties here, especially under the Section 8 program. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $890 (for the metro area in fiscal year 2026) cover the mortgage on a home valued at $208,853?
The FMR of $890 does not directly correlate to the mortgage coverage without knowing the specific mortgage terms, interest rates, and down payment amount. However, using a standard 30-year fixed-rate mortgage at an average interest rate, the monthly payment on a $208,853 home could range significantly depending on the down payment and interest rate. For instance, with a 20% down payment and a 4% interest rate, the monthly mortgage payment would be approximately $780, which is comfortably covered by the $890 FMR. But if the interest rate rises to 6%, the monthly payment would increase to around $950, exceeding the FMR. Therefore, the FMR alone does not guarantee full coverage of the mortgage payment without considering other financial factors.
Objection 2: Is there enough renter demand at 35.3%?
The rental demand at 35.3% indicates that a significant portion of the population in ZIP 65565 is already renting, suggesting a reasonable level of demand. However, this percentage alone does not provide a complete picture of the rental market's health. To fully assess the demand, we would need additional data such as vacancy rates, average length of tenancy, and the number of new renters entering the market annually. The 35.3% figure implies that over one-third of the residents are seeking rental housing, which can be seen as a positive sign for potential rental income stability.
Objection 3: Will vouchers keep pace with market rents of $698?
The data shows that the voucher amount in ZIP 65565 is set at $890, which exceeds the current market rent of $698. This suggests that vouchers will likely cover the market rents, providing a stable source of income for landlords. However, it's important to note that market rents can fluctuate based on various economic conditions and landlord policies. If market rents rise above the voucher amount, landlords might face challenges in maintaining profitability unless they can adjust their property management strategies accordingly.
In conclusion, while the data provides some reassurance regarding the ability of vouchers to cover market rents and indicates a substantial renter demand, the sustainability of mortgage payments under the FMR must be evaluated against individual financial circumstances. Additional research into local economic trends and rental market dynamics would further clarify the investment potential in ZIP 65565.
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.