Location: St. Joseph, MO | Metro: St. Joseph, MO-KS MSA
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 | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $163,484 | 0.62% | D |
| 3BR | $1,300 | $205,772 | 0.63% | D |
| 4BR | $1,510 | $265,601 | 0.57% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 66090 might have several concerns regarding the viability of investing in properties for the Section 8 housing program. Let's address these objections head-on using the available data.
The Fair Market Rent (FMR) for ZIP 66090 in fiscal year 2024 is set at $910. This figure represents the average monthly rent that a tenant can expect to pay under the Section 8 program. To determine if this amount will sufficiently cover the mortgage, we must consider the typical mortgage payment on a home priced at $183,975. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly principal and interest payment would be approximately $970. This means that the FMR of $910 falls slightly short of covering the mortgage payment, leaving a shortfall of $60 per month. However, it's important to note that additional income from utilities and other sources could help bridge this gap.
The rental demand in ZIP 66090 is indicated by the percentage of households that are renters, which stands at 20.6%. While this number might seem low to some investors, it is essential to understand that this statistic alone does not provide a complete picture. The demand for affordable housing, particularly for those eligible for Section 8, is often higher due to limited options. Moreover, the percentage of renters does not account for the total number of potential applicants for the Section 8 program. To get a clearer understanding, one would need to look at the waiting list lengths and the number of Section 8 participants in the area.
The question of whether Section 8 vouchers will keep up with market rents of $806 is crucial. According to the data, the FMR for ZIP 66090 is $910, which is higher than the market rent. This suggests that the voucher amounts are likely to exceed the market rent, providing a buffer for landlords. However, the actual amount paid by the voucher can vary based on the tenant's income and other factors. It is critical to monitor any changes in voucher policies and the local rental market to ensure continued profitability.
In summary, while there are valid concerns about the financial viability of investing in Section 8 properties in ZIP 66090, the data indicates that the FMR covers most of the mortgage payment, and the voucher amounts are generally higher than the market rent. However, the exact level of renter demand requires further investigation beyond the given percentage.
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.