Location: Miller 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 | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $265,212 | 0.65% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 65591 reveals a significant gap between the Fair Market Rent (FMR) set at $1,130 for the metro area in fiscal year 2026 and the actual market rent of $1,015 as reported by the Census ACS. This discrepancy amounts to $115, or approximately an 11.3% difference, favoring the FMR over the current market rent.
The gap suggests that landlords and small-portfolio investors can leverage the Section 8 program to achieve higher yields compared to the open-market rental rates. By participating in the Section 8 program, landlords can charge rents closer to the FMR rate, thereby increasing their rental income by $115 per month, which is a substantial margin given the economic context of the area.
In ZIP 65591, where 28.1% of residents are renters, the median home value stands at $239,510 and the median household income is $50,139. The higher FMR rate makes it feasible for voucher tenants to afford housing at levels above the current market rent, thus benefiting landlords who can charge closer to the FMR without pricing out potential tenants. This dynamic creates an opportunity for landlords to maintain or even improve their cash flow while still providing affordable housing options to low-income families.
However, it's crucial to consider the administrative aspects of managing Section 8 properties. While the financial benefits are clear, there may be additional costs or requirements associated with participating in the program. These include regular inspections, compliance with HUD standards, and possibly lower vacancy rates due to the demand for affordable housing. Despite these considerations, the financial incentive of the FMR being higher than the market rent presents a compelling case for landlords to engage with the Section 8 program.
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.