Location: Laclede 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 | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $239,127 | 0.56% | F |
U.S. Census Bureau data (2024)
ZIP 65632, located in Laclede County, Missouri, serves as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 65632 is set at $800 for fiscal year 2024, while the market rent stands at $584, indicating a significant spread that benefits landlords participating in the program. This means that landlords can receive higher rents through Section 8 vouchers compared to the local market rate, enhancing their cash flow.
The median home value in ZIP 65632 is $257,319, which is relatively stable and provides a solid base for investment. According to recent data, the housing market in this area has seen a median home sale price of $204,525.5, suggesting limited appreciation potential. However, the key advantage lies in the guaranteed rental income from the Section 8 program, which helps stabilize cash flow and mitigate risks associated with fluctuating market conditions.
Despite the lack of substantial appreciation opportunities, ZIP 65632 offers a strong tenant pool. With a renter share of 28.0%, there is a consistent demand for rental properties. Additionally, the median income of $57,656 ensures that tenants are likely to meet the eligibility requirements for Section 8 assistance, further supporting the reliability of the cash flow.
In conclusion, ZIP 65632 is best suited as a cash-flow anchor due to the favorable spread between FMR and market rent, coupled with a stable median home value and a reliable tenant pool. This makes it an ideal choice for landlords and small-portfolio investors seeking steady, predictable returns.
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.