Section 8 Fair Market Rent (FMR) for ZIP 65803 - 2027

Investment Score for ZIP 65803

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	$890
1 Bedroom	$890
2 Bedrooms	$1,090
3 Bedrooms	$1,510
4 Bedrooms	$1,730
5 Bedrooms	$2,007
6 Bedrooms	$2,248
7 Bedrooms	$2,428
8 Bedrooms	$2,549

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$890	$83,570	1.06%	B
2BR	$1,090	$120,957	0.9%	C
3BR	$1,510	$205,762	0.73%	D
4BR	$1,730	$318,908	0.54%	F
5BR	$2,007	$396,692	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 65803 (Springfield, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 65803 in Springfield, Missouri, is set by HUD for 2026. The FMRs are as follows: - 0BR: $850 - 1BR: $850 - 2BR: $1060 (which is 25.2% of the median household income) - 3BR: $1450 - 4BR: $1650 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. For a 2BR unit, the Zillow median price is $118,986, which translates to a monthly rent of approximately $458 based on typical mortgage payments and property taxes. This means the price-to-FMR ratio for a 2BR unit is 9.4x, indicating that the actual rental costs are significantly higher than the FMR. Given this disparity, voucher holders face significant constraints. They can only afford units that do not exceed their FMR limits. For example, a voucher holder with a 2BR limit would be restricted to paying $1060 per month, even though the average market rent for a 2BR unit could be much higher. This creates a challenge for voucher holders to find suitable housing within their budget. #### Affordability & Renter Profile ZIP code 65803 has a population of 42,882, with 45.0% of residents being renters. The occupancy rate is 91.8%, suggesting a relatively tight rental market. Given that 25.2% of the median household income ($50,572) goes towards a 2BR unit's FMR, it indicates that many residents, especially those relying on Section 8 vouchers, are likely to be facing affordability challenges. The high percentage of renters and the tight market conditions imply that there is a strong demand for rental properties. However, the limited financial resources of many residents, particularly those dependent on Section 8 vouchers, mean that landlords must be willing to accept lower rents to attract tenants. This dynamic can make it difficult for landlords to cover their expenses and maintain profitability. #### Investor Angle From an investor perspective, the ZIP code 65803 presents both opportunities and challenges. The FMRs set by HUD provide a benchmark for what voucher holders can pay, but the actual market rents are substantially higher. A 2BR unit with a Zillow median price of $118,986 would typically generate a monthly rent of around $458 if financed through a mortgage. This is far below the FMR of $1060, indicating that the ZIP code could potentially be cash-flow positive for investors who are willing to accept Section 8 vouchers. However, the investment grade of this ZIP code depends on several factors, including the willingness of landlords to participate in the Section 8 program and the overall demand for affordable housing. With a high renter population and a tight market, there is potential for steady occupancy rates, which is crucial for maintaining positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have an FMR of $850, which is closer to the typical market rent of around $458. This alignment increases the likelihood of positive cash flow. 2. **Consider Renovation Projects**: Investors might find value in purchasing older properties that require renovations. By improving the condition of these properties, they can potentially command higher rents while still staying within the FMR limits. This strategy can help bridge the gap between the FMR and the actual market rent. 3. **Engage with Local Housing Authorities**: To ensure a steady stream of tenants, investors should actively engage with local housing authorities and familiarize themselves with the Section 8 application process. Building relationships with these entities can lead to faster tenant placement and reduced vacancy periods. #### Bottom Line For Section 8-focused investors, ZIP code 65803 offers a mixed picture. While the high price-to-FMR ratio poses challenges, the strong demand for rental properties and the high renter population suggest that there is potential for positive cash flow, especially if investors focus on smaller units and consider renovation projects. **Recommendation**: **Buy**. The combination of high demand and the potential for positive cash flow makes this ZIP code a viable option for investors looking to participate in the Section 8 program. However, careful consideration of unit size and location will be key to maximizing 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.