Location: Springfield, 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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $102,494 | 0.92% | C |
| 2BR | $1,140 | $118,602 | 0.96% | C |
| 3BR | $1,580 | $151,693 | 1.04% | B |
| 4BR | $1,810 | $191,598 | 0.94% | C |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 65806 (Springfield, MO) for Section 8 investments, follow this decision tree:
1) Does FMR $900 (ZIP FY 2024) clear debt service on a $137,192 property?
If your debt service (including mortgage, insurance, taxes, and maintenance) is less than $900 per month, then yes. For example, if you can secure a mortgage at a rate that keeps your total monthly expenses under $900, you will be profitable. If your debt service exceeds $900, then no. A property costing $137,192 would typically have higher debt service costs, especially considering additional expenses such as insurance and taxes.
2) Is market rent $1,025 (ZORI) above, at, or below FMR?
The ZORI (Zillow Observed Rent Index) for ZIP 65806 is $1,025, which is above the FMR (Fair Market Rent) of $900. This means that landlords could potentially charge more than the Section 8 payment limit. However, tenants might struggle to cover the difference between the FMR and ZORI, leading to financial strain. Therefore, if you plan to rent exclusively to Section 8 tenants, you must ensure that the FMR covers your debt service. If you aim to diversify your tenant pool, you can consider renting to both market-rate and Section 8 tenants, but you must be prepared to manage a mix of payment sources.
3) Are 87.3% renters + N/A-day DOM enough demand?
The rental rate in ZIP 65806 is 87.3%, indicating a strong demand for rental properties. However, the DOM (Days on Market) being listed as N/A suggests incomplete data or an anomaly. Assuming a reasonable DOM, the high percentage of renters supports a robust demand for rentals. If you decide to invest, ensure that you can manage the property effectively, as Section 8 comes with its own set of regulations and requirements. The high demand for rentals combined with a diversified tenant strategy could lead to a successful investment.
Based on these factors, if you can keep your debt service below $900 and are willing to manage a mix of market-rate and Section 8 tenants, then yes, ZIP 65806 presents a viable opportunity. Otherwise, it depends on your ability to manage the property and navigate the local rental market dynamics.
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.