Section 8 Fair Market Rent (FMR) for ZIP 66087 - 2027

Investment Score for ZIP 66087

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	$740
1 Bedroom	$750
2 Bedrooms	$970
3 Bedrooms	$1,230
4 Bedrooms	$1,420
5 Bedrooms	$1,647
6 Bedrooms	$1,845
7 Bedrooms	$1,993
8 Bedrooms	$2,093

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
2BR	$970	$133,769	0.73%	D
3BR	$1,230	$203,938	0.6%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 66087, located in St. Joseph, MO-KS MSA metro, is best suited as a **cash-flow anchor** within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 66087 in fiscal year 2024 is set at $880. This figure is significantly higher than the market rent of $757, indicating a positive spread of $123 per month. This spread ensures that landlords can generate stable cash flow above the typical market rates, which is crucial for maintaining financial stability within their investment portfolios. The median home value in ZIP 66087 is $173,182, suggesting that property values are relatively affordable. This makes it easier for landlords to acquire properties without requiring substantial upfront capital. Additionally, the median income of $56,875 indicates that residents have the means to pay the Section 8 rents, further supporting the reliability of cash flow.

While the area does not show strong signs of being an appreciation play, with no specific percentage increase in property values noted, the primary focus should be on the steady rental income it provides. This makes ZIP 66087 an ideal candidate for a cash-flow anchor in a Section 8 portfolio.

The renter share of 16.7% suggests a moderate demand for rentals, balancing between high vacancy risks and oversaturation. Given the positive spread between FMR and market rent, landlords can confidently offer competitive Section 8 rents while still achieving higher returns than the general market.

In conclusion, ZIP 66087 serves as a reliable cash-flow anchor due to the favorable spread between FMR and market rent, coupled with its affordability and the financial capability of its residents. This positioning allows landlords to secure consistent income, which is essential for managing a diverse real estate portfolio effectively.

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.