Section 8 Fair Market Rent (FMR) for ZIP 65804 - 2027

Investment Score for ZIP 65804

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	$910
1 Bedroom	$910
2 Bedrooms	$1,110
3 Bedrooms	$1,540
4 Bedrooms	$1,760
5 Bedrooms	$2,042
6 Bedrooms	$2,287
7 Bedrooms	$2,470
8 Bedrooms	$2,594

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
2BR	$1,110	$190,799	0.58%	F
3BR	$1,540	$252,404	0.61%	D
4BR	$1,760	$378,271	0.47%	F
5BR	$2,042	$532,757	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 65804 (Springfield, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 65804 (Springfield, MO) in Greene County for 2026 indicate that the rent for a 2BR unit is set at $1090. This represents 21.0% of the median household income of $62,301. However, the actual rental market in Springfield shows a different picture. The Zillow median price for a 2BR home is $185,042, which translates into a monthly rent of approximately $1,442 based on typical rental yields. This is significantly higher than the FMR, indicating a substantial gap between the actual market rents and the FMR. For voucher holders, this means they will likely face significant constraints in finding affordable housing. Only about 75.6% of the 2BR units in the market would be considered affordable under the FMR guidelines, leaving many voucher holders with limited options. #### Affordability & Renter Profile With 44.7% of the population renting, there is a considerable demand for rental properties in ZIP 65804. The occupancy rate stands at 95.2%, suggesting a tight rental market where supply is relatively low compared to demand. Given the median household income of $62,301, the majority of renters are likely to be middle-class families or individuals who are working but earning below average wages. The high occupancy rate and significant renter percentage indicate that the market is competitive, and landlords can often command higher rents due to the scarcity of available units. #### Investor Angle From an investor perspective, the ZIP code 65804 presents a mixed scenario. The FMR for a 2BR unit is $1090, but the actual market rent is around $1,442, which is 14.1 times the FMR. This suggests that the cash flow potential for investors focusing on Section 8 vouchers is quite low, as they would need to operate at a much lower rent than the market rate. However, the high occupancy rate and strong demand for rental properties could still make it attractive for investors willing to cater to non-voucher tenants. The investment grade would be moderate, given the balance between affordability for voucher holders and the higher rents commanded by the market. #### Specific Actionable Insights 1. **Focus on Non-Voucher Tenants**: Given the high price-to-FMR ratio, investors should consider targeting non-voucher tenants. This would allow them to achieve higher rental incomes, potentially improving their cash flow and return on investment. For example, renting out a 2BR unit at the market rate of $1,442 would yield a much better financial outcome than operating at the FMR of $1090. 2. **Consider Renovations for Higher Rents**: Investors might want to look into properties that require renovations. By investing in upgrades, they can position these units to command higher rents, aligning closer with the market rates. A renovated 2BR unit could easily fetch the market rate of $1,442, making it a more lucrative investment. 3. **Explore Multi-Family Units**: Since the FMR for larger units (3BR and 4BR) is higher, investors might find more opportunities in multi-family units. For instance, a 3BR unit with an FMR of $1490 could still provide reasonable cash flow while being more affordable for voucher holders compared to single-family homes. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 65804 is to **Skip**. The high price-to-FMR ratio and the limited number of units that would be affordable under the FMR guidelines make it challenging to achieve positive cash flow solely through Section 8 vouchers. Instead, investors should consider either targeting non-voucher tenants or exploring other ZIP codes with a lower price-to-FMR ratio that offer better opportunities for Section 8 investments.

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.