Location: Worth County, MO | Metro: Harrison County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 64456 provides a critical view for landlords and small-portfolio investors considering properties in this area. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $890 annually. However, the actual market rent is estimated at $395 based on Census ACS data. Given that the median home value is not available, we must rely on these rental figures to derive an implied gross yield.
First, let's annualize the FMR and market rent figures. At $890 per month, the annual FMR for a 2BR property amounts to $10,680. Meanwhile, the market rent at $395 per month translates to an annual rent of $4,740. These figures suggest two different gross yields when considering potential investment properties in ZIP 64456.
The implied gross yield using the FMR is significantly higher compared to the market rent. With an annual rent of $10,680 from the FMR, the gross yield would be much better for landlords participating in the Section 8 program. Conversely, relying solely on the market rent figure of $4,740 would result in a lower gross yield.
The choice between these two scenarios hinges on the reality of the local rental market. In ZIP 64456, the renter density stands at 17.6%, indicating a relatively low proportion of renters in the area. This suggests that landlords might face challenges in filling units, especially if they are not part of the Section 8 program. Furthermore, the lack of available data on days on market (DOM) makes it difficult to predict how quickly units can be rented out under either scenario.
Given the low renter density, the higher gross yield from the FMR appears more realistic for landlords willing to participate in the Section 8 program. This program ensures a steady stream of income through government subsidies, which is particularly beneficial in areas where the private rental market is less robust. Therefore, for those looking to invest in ZIP 64456, aligning with the Section 8 guidelines could provide a more stable and predictable income source, despite the absence of median home values to fully contextualize the investment opportunity.
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.