Section 8 Fair Market Rent (FMR) for ZIP 65807 - 2027

Investment Score for ZIP 65807

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	$990
1 Bedroom	$1,000
2 Bedrooms	$1,220
3 Bedrooms	$1,690
4 Bedrooms	$1,940
5 Bedrooms	$2,250
6 Bedrooms	$2,520
7 Bedrooms	$2,722
8 Bedrooms	$2,858

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	$1,000	$116,578	0.86%	C
2BR	$1,220	$178,717	0.68%	D
3BR	$1,690	$235,697	0.72%	D
4BR	$1,940	$304,793	0.64%	D
5BR	$2,250	$357,411	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 65807 (Springfield, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 65807, as set by HUD for 2026, is $1200 for a two-bedroom unit. This represents 26.7% of the median household income in the area, which stands at $53,870. The FMR for a two-bedroom unit is significantly lower than the Zillow median price of $173,413, indicating that the rental market is much more affordable compared to the purchase market. However, the actual rents in the area can be higher than the FMR, as evidenced by the Price-to-FMR ratio of 12.0x for a two-bedroom unit. This means that if a property is priced at the Zillow median, it would cost $1200 multiplied by 12, or $14,400 per month, which is unrealistic. Therefore, we need to consider the actual rent levels that are likely to be closer to the FMR but still above it. For instance, if a two-bedroom unit is rented at $1500, it would exceed the FMR by 25%. This could pose significant constraints for voucher holders, who might struggle to find units within their budget. #### Affordability & Renter Profile ZIP code 65807 has a high renter population, with 55.5% of residents being renters. The occupancy rate is also quite high at 95.5%, suggesting that there is strong demand for rental properties. Given the median household income of $53,870, the majority of renters are likely to be low-income families or individuals who rely on assistance programs like Section 8 vouchers. The median household income indicates that many residents are already stretched financially. With the FMR for a two-bedroom unit being $1200, this represents a significant portion of their monthly income. The high renter percentage and occupancy rate suggest that the market is tight, with limited availability of affordable units. This makes it challenging for voucher holders to find suitable housing, especially when landlords may prefer higher-paying tenants. #### Investor Angle From an investor perspective, the ZIP code 65807 offers potential for cash flow-positive investments, particularly if targeting Section 8 voucher holders. However, the actual rents must be carefully considered. If a two-bedroom unit is rented at the FMR of $1200, it would provide a stable but modest cash flow. To determine if this is cash flow positive, we need to look at typical operating expenses, including mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of 50% of the rent going towards these expenses, the net cash flow would be around $600 per month. The investment grade can be assessed based on the demand for rental properties and the likelihood of finding tenants. Given the high renter percentage and occupancy rate, the demand for rentals is strong. However, the challenge lies in ensuring that the rents do not exceed the FMR too significantly, which could deter voucher holders. Therefore, while the ZIP code presents opportunities, careful management and pricing strategies are essential to maintain a positive cash flow and attract Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring or developing properties that align closely with the FMR. For example, a two-bedroom unit priced at $1200 would be ideal for attracting Section 8 voucher holders. This ensures compliance with HUD guidelines and maximizes the chances of finding tenants. 2. **Consider Property Location**: Given the high renter percentage and occupancy rate, investors should prioritize locations within the ZIP code that are most attractive to renters. Areas near public transportation, schools, and amenities are likely to have higher demand and better tenant retention rates. 3. **Rent Stabilization Strategy**: Implement a rent stabilization strategy where rents are kept close to the FMR. For a two-bedroom unit, setting the rent at $1200 or slightly above ($1300-$1400) would balance affordability with profitability. This approach would help maintain a positive cash flow while remaining accessible to voucher holders. #### Bottom Line For Section 8-focused investors, the ZIP code 65807 presents a mixed picture. While there is strong demand for rental properties, the high renter percentage and occupancy rate indicate a tight market. The key to success lies in offering affordable units that are within the FMR range or slightly above it. Based on the data provided, the recommendation is to **Hold** investments in this ZIP code. The market dynamics favor stability over rapid growth, making it a solid choice for investors looking for consistent returns rather than speculative gains. In summary, the ZIP code 65807 offers a stable rental market with strong demand, but investors must be cautious about pricing to ensure they remain competitive and attractive to voucher holders.

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.