Location: Lawrence County, MO | Metro: Springfield, 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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $180,595 | 0.55% | F |
| 3BR | $1,350 | $271,375 | 0.5% | F |
| 4BR | $1,540 | $335,337 | 0.46% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 65604, which includes Ash Grove, MO, and parts of Greene County and Lawrence County, reveals a nearly balanced scenario between the HUD Fair Market Rent (FMR) and the actual market rent. The HUD FMR for this area is set at $800 per month for fiscal year 2024, while the Census American Community Survey (ACS) reports the market rent at $798. This slight edge in favor of the HUD FMR means that landlords accepting Section 8 vouchers can expect marginal cash flow on standard units.
To further understand the investment potential, consider the median home value in ZIP 65604, which stands at $255,039. Using this figure, we can derive a rent-to-price ratio. Assuming a typical mortgage rate and property taxes, a monthly rent of $800 would cover approximately 38.5% of the total monthly costs for a homeowner in this area, indicating a reasonable alignment between rental income and property values. However, it's important to note that the exact percentage will vary based on individual financing terms and property conditions.
In terms of the rental versus buying dynamics, the median days on market (DOM) and the percentage of price cuts are not available. Nonetheless, the near parity between the HUD FMR and market rent suggests that voucher tenants can generally afford standard units without requiring significant concessions from landlords. This stability in the rental market is beneficial for investors looking to maintain consistent cash flow.
The strongest investor angle in ZIP 65604 is likely to be stability. Given the close alignment between the HUD FMR and market rent, along with the reasonable rent-to-price ratio, investors can expect steady and predictable returns on their investment properties. This makes the area particularly attractive for those seeking long-term, low-risk investments.
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.