Location: Wayne County, MO | Metro: Cape Girardeau, MO-IL 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 | $850 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $160,844 | 0.71% | D |
| 3BR | $1,440 | $214,758 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 63655 (Marquand, MO) reveals an interesting picture when comparing the Federal Market Rent (FMR) to the median home value. The annualized 2-bedroom FMR for fiscal year 2024 is set at $810 per month. This translates to an annual rental income of $9,720.
To calculate the gross yield based on the FMR, we divide the annual rental income by the median home value of $207,050. This yields a gross rental yield of approximately 4.7%. This figure is derived from the following calculation:
$9,720 / $207,050 = 0.047 or 4.7%
In contrast, the market rent for the area is listed as N/A, which means there isn't sufficient data to provide a reliable estimate. However, if we were to assume that the market rent is higher than the FMR, the gross yield would likely be greater than 4.7%. For instance, if the market rent was hypothetically $1,000 per month, the annual rental income would be $12,000, leading to a gross yield of about 5.8%, calculated as follows:
$12,000 / $207,050 = 0.058 or 5.8%
Given the 21.5% renter density in Marquand, it's clear that a significant portion of the population is looking for rental properties. However, the N/A-day DOM (days on market) suggests that there might be a lack of available rental data or that the market is not very active. This makes the FMR scenario more realistic for calculating the gross yield until more accurate market rent data becomes available.
The lower gross yield based on the FMR reflects the government-regulated nature of Section 8 rents, which typically do not keep pace with market rates. Therefore, investors should consider the 4.7% gross yield as a conservative estimate, especially if they are planning to rely solely on Section 8 tenants. If market conditions improve and more precise market rent figures emerge, the gross yield could potentially rise to around 5.8% or higher, depending on actual market rates.
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.