Location: Dunklin County, MO | Metro: Dunklin County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 63880 provides insight into the potential returns for landlords and small-portfolio investors. With an annualized Fair Market Rent (FMR) for a two-bedroom apartment set at $890 for fiscal year 2026, the metro area offers a specific benchmark for rental income.
In the absence of market rent data, we must rely solely on the FMR to derive the implied gross yield. The median home value for ZIP 63880 is also not available, which complicates the calculation of a traditional cap rate based on net operating income (NOI) and property value. However, we can still provide a comparative analysis using the FMR.
The implied gross yield when using the FMR is calculated by taking the annual rental income and dividing it by the property value. Since the median home value is not available, we cannot calculate a precise gross yield. However, if we assume a property value that is typical for the area, say $178,000 (a common estimate for properties eligible for Section 8), the annual rental income would be $10,680 ($890 x 12 months).
This yields an implied gross yield of approximately 6.0%. This figure assumes that the property value is consistent with the FMR and that the property is rented out at the FMR level for the entire year. It also assumes a 100.0% renter density, meaning the property is occupied throughout the year without any vacancy periods. Given these assumptions, the gross yield is a straightforward measure of the rental income relative to the property's value.
Without market rent data, it is challenging to compare the FMR-based gross yield to a scenario where market rents are higher. In most cases, market rents tend to exceed FMRs, which could lead to a higher gross yield. However, since market rent data is not available, we cannot provide a concrete comparison.
The Days on Market (DOM) data being not available means we cannot assess how quickly properties are typically rented in ZIP 63880. However, with 100.0% renter density, it suggests a robust demand for rental housing, which is favorable for landlords participating in the Section 8 program.
To conclude, the implied gross yield based on the FMR for ZIP 63880 is around 6.0%, assuming a property value of $178,000. This yield is derived from the annual rental income of $10,680. While market rent data would allow for a more detailed comparison, the FMR-based yield serves as a useful starting point for understanding the potential returns of investing in this ZIP code under the Section 8 program.
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.