Location: Polk 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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $275,192 | 0.57% | F |
| 4BR | $1,800 | $404,712 | 0.44% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 65725 for Section 8 investments must evaluate several factors to make an informed decision. The first step involves assessing whether the Fair Market Rent (FMR) of $930 for the fiscal year 2024 can cover the debt service on a property valued at $274,491. This means calculating if the monthly rental income can sustain the mortgage payments, property taxes, insurance, and maintenance costs.
If the answer to the first question is yes, then the next consideration is comparing the FMR to the actual market rent. In ZIP 65725, the market rent is $967, according to the Census ACS data. Since the market rent is slightly above the FMR, it indicates that landlords could potentially charge a bit more than the FMR, thus increasing their cash flow. However, this also means that the property might not be fully occupied by Section 8 tenants, requiring a mix of both government-subsidized and market-rate tenants to maximize profitability.
The third factor is the demand for rentals. ZIP 65725 has a rental rate of 20.0% of the total housing units. The average days on market (DOM) is listed as N/A, which could mean insufficient data or that rentals are absorbed quickly, indicating strong demand. With 20% of the housing stock being rented out, there is a reasonable level of demand, but it is not exceptionally high. If the landlord is willing to manage a property with a moderate occupancy rate, then the answer is yes, there is enough demand. Otherwise, it depends on how much risk the landlord is willing to take regarding vacancy rates.
To summarize:
If the FMR of $930 covers all debt service costs, proceed to the next step. If not, do not invest in this ZIP code.
If the market rent of $967 is above the FMR, it suggests potential for higher income but requires managing a mix of Section 8 and market-rate tenants. If market rent is at or below FMR, consider other areas where market rents exceed the FMR.
If the 20% rental rate is acceptable given the N/A-day DOM (which implies quick absorption), then there is sufficient demand. If not, the landlord should seek ZIP codes with higher rental rates or clearer DOM data indicating consistent demand.
The decision to invest in ZIP 65725 hinges on these three factors. A positive outcome on all fronts points to a viable investment opportunity, while negative outcomes suggest looking elsewhere for better returns or lower risks.
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.