Section 8 Fair Market Rent (FMR) for ZIP 65802 - 2027

Investment Score for ZIP 65802

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$820
1 Bedroom	$820
2 Bedrooms	$1,000
3 Bedrooms	$1,380
4 Bedrooms	$1,590
5 Bedrooms	$1,844
6 Bedrooms	$2,065
7 Bedrooms	$2,230
8 Bedrooms	$2,342

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$820	$86,830	0.94%	C
2BR	$1,000	$128,804	0.78%	D
3BR	$1,380	$223,336	0.62%	D
4BR	$1,590	$336,508	0.47%	F
5BR	$1,844	$506,891	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 65802 (Springfield, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 65802 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $980 per month. This amount represents 21.4% of the median household income in the area, which is $55,019. To understand how this compares to actual rents, we can look at the Zillow median price for a two-bedroom unit, which is $125,125. The price-to-FMR ratio is 10.6x, indicating that the median home value is significantly higher than the monthly rent. However, it’s important to note that FMR is intended to reflect the average rent for a modest apartment in the area, and it serves as the ceiling for rental payments under the Section 8 program. Actual rents can vary widely, but if they exceed the FMR, voucher holders would need to pay the difference out-of-pocket, which could be challenging given their income levels. Therefore, landlords who want to attract Section 8 tenants should ensure their rents do not exceed these FMRs. #### Affordability & Renter Profile ZIP code 65802 has a population of 46,739, with 41.4% of residents being renters. This suggests a significant portion of the population relies on rental housing, making the rental market quite active. The occupancy rate of 92.3% indicates that there is a high demand for rental properties, suggesting that the market is relatively tight. Given the median household income of $55,019, many residents may find it difficult to afford homeownership, especially considering the median home value for a two-bedroom unit is $125,125. The FMR for a two-bedroom unit at $980 is a critical benchmark for affordability. With 21.4% of the median income allocated towards rent, it leaves a substantial portion of the household budget for other expenses. However, the tight market and high occupancy rate suggest that competition for affordable units could be fierce, potentially driving up rents and making it harder for voucher holders to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 65802 presents a mixed picture. The FMRs provide a clear guideline for what rents can be charged to attract Section 8 tenants. However, the price-to-FMR ratio of 10.6x indicates that the median home value is much higher than the monthly rent, which could make it challenging to achieve positive cash flow if investing in homes rather than apartments. For cash flow to be positive, investors must consider not only the rent but also the costs associated with owning and maintaining a property. If the purchase price of a property is around $125,125, the monthly mortgage payment, property taxes, insurance, and maintenance costs would likely exceed the FMR. Thus, the investment grade for this ZIP code would be moderate to low for single-family homes, but potentially better for multi-unit properties where economies of scale can help manage costs. #### Specific Actionable Insights 1. **Focus on Multi-Unit Properties**: Given the high price-to-FMR ratio, investors should focus on multi-unit properties such as duplexes, triplexes, or small apartment buildings. These can offer better cash flow due to shared costs and the ability to charge slightly above FMR for larger units while still attracting Section 8 tenants. 2. **Target Lower-Rent Units**: Investors should target lower-rent units like one-bedroom or studio apartments, where the FMR is $790. This can help ensure that rents are more closely aligned with the FMR, reducing the risk of negative cash flow. Additionally, these units are more likely to be affordable for voucher holders. 3. **Consider Location-Specific Factors**: While the overall market is tight, certain neighborhoods within ZIP code 65802 might have different dynamics. Conducting a neighborhood-specific analysis could reveal areas with lower vacancy rates and higher demand, making them more attractive for investment. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 65802 is to **Hold** or **Skip** single-family homes due to the high price-to-FMR ratio. Instead, investors should **Buy** multi-unit properties, particularly those with smaller units, to ensure positive cash flow and alignment with the FMR guidelines. The tight market and high occupancy rate suggest strong demand, but careful selection of property type and location is crucial for success.

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.