Location: Springfield, MO | Metro: Springfield, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
The Section 8 thesis for ZIP code 65814 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $920. However, the market rent in this area is currently unknown, as indicated by the N/A entries in the data. This creates a unique situation where landlords and small-portfolio investors must rely on additional information to make informed decisions.
In the absence of market rent data, we can still analyze the impact of the FMR on rental properties. The FMR represents the maximum amount that HUD will pay for a rental unit under the Section 8 program. When the FMR exceeds the market rent, it signals a potential opportunity for landlords to attract voucher tenants, effectively turning this into a yield play. Voucher holders can cover the rent without requiring additional out-of-pocket expenses from the landlord, thus ensuring a steady and reliable income stream. Conversely, if the market rent were higher than the FMR, landlords would face the cost of subsidizing the difference between the voucher amount and the market rate, which could reduce profitability.
To anchor this analysis within the broader context of Unknown, MO, it's important to note that the percentage of renters, median home value, and median income are all currently unavailable. Without these figures, it's challenging to provide a comprehensive assessment of the local rental market dynamics. Nonetheless, the FMR stands as a critical benchmark for landlords considering Section 8 tenants in ZIP 65814.
Given the unknowns about the local market conditions, landlords should consider other factors such as the stability of HUD funding, the administrative ease of managing Section 8 properties, and the overall demand for affordable housing in the area. These elements, combined with the FMR of $920, form the basis for strategic decision-making regarding Section 8 participation.
Data Sources: FMR data from HUD (2027).
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.