Location: Scotland County, MO | Metro: Clark County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 63474 provides insights into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metropolitan area for fiscal year 2026 is set at an annualized figure of $900. This contrasts with the market rent, based on Census ACS data, which stands at an annualized $575.
To derive the gross yield, we must first calculate the implied rental income for each scenario. For the FMR scenario, a 2-bedroom apartment would generate $900 annually per unit under Section 8. For the market rent scenario, the same unit would bring in $575 annually. Given that the median home value is not available, we will focus on the rental income to assess the viability of these options.
The implied gross yield can be calculated by dividing the annual rental income by the property's value. Since the median home value for ZIP 63474 is not available, we cannot provide a precise gross yield percentage. However, we can compare the two annualized rental incomes directly. In the FMR scenario, landlords receive $900 annually per 2-bedroom unit, while in the market rent scenario, they receive $575 annually per unit. This means the FMR scenario offers a higher gross yield than the market rent scenario.
Given the renter density of 32.7%, it is clear that a significant portion of the population in ZIP 63474 relies on rental housing. However, the lack of Days on Market (DOM) data makes it difficult to predict how quickly properties might be filled under either scenario. Despite this, the FMR scenario remains more attractive due to the higher annual rental income it guarantees.
Investors should note that the actual net operating income (NOI) will depend on various factors such as maintenance costs, vacancy rates, and other expenses. Nonetheless, the comparison between the two gross yields is straightforward: a Section 8 contract at the FMR rate of $900 per month offers a higher gross yield than renting at the market rate of $575 per month. This makes the FMR scenario more realistic for those looking to maximize their rental income in ZIP 63474.
Data Sources: FMR data from HUD (2027). 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.