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 | $262,484 | 0.38% | F |
| 3BR | $1,350 | $379,148 | 0.36% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into the ZIP code 65612 (Bois D Arc, MO) might have several concerns regarding the feasibility of investing in rental properties here. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $880 (for zip FY 2024) cover the mortgage on a $363,853 home?
The FMR of $880 does not directly indicate if it will cover the mortgage on a home valued at $363,853. To determine this, we need to calculate the expected monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage at an average interest rate of 5%, the principal and interest payment alone would be approximately $1,925 per month. This amount does not include property taxes, insurance, maintenance, and other costs associated with owning a property. Therefore, relying solely on the FMR of $880 would not cover the mortgage payments without additional income sources or a lower purchase price.
Objection 2: Is there enough renter demand at 26.6%?
The renter occupancy rate of 26.6% suggests that less than a third of the housing units are rented. This could indicate a relatively low demand for rentals. However, the percentage alone does not provide a complete picture of the rental market's health. It is crucial to consider the total number of units and the vacancy rate. With only 26.6% of units being rented, competition among landlords could be fierce, and it may take longer to find tenants willing to pay the FMR. Additionally, a lower percentage of renters might mean that the majority of residents prefer homeownership, which could impact the willingness to pay higher rents.
Objection 3: Will vouchers keep pace with $540 market rents?
The Housing Choice Voucher program, commonly known as Section 8, aims to subsidize rents for eligible low-income families. The FMR of $880 indicates what HUD deems a reasonable rent for the area. If the market rents are $540, the voucher should cover this amount. However, the actual voucher payment can vary based on the tenant's income and other factors. In ZIP 65612, landlords might find that voucher holders can only afford to pay a portion of the FMR due to their income levels. This means that while the vouchers will likely cover the $540 market rent, they might not be sufficient to reach the $880 FMR, especially if market rents rise above the current $540 level.
The data provides insights but does not offer a comprehensive view of the investment potential. For instance, it does not specify the number of rental units or the exact vacancy rate, which are critical metrics for assessing the rental market's strength. Moreover, the data lacks specifics on local economic conditions, such as unemployment rates or median household income, which can significantly affect renter demand and voucher utilization.
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.