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 | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $238,768 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 64494 provides a detailed look at the potential returns for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $940 per month for FY 2024, the annualized rental income would be $11,280. Given the median home value of $219,683, this translates to an implied gross yield of approximately 5.14%. This calculation is derived by dividing the annual rental income by the property value.
In contrast, using the market rent figure of $915 per month as reported by the Census ACS, the annualized rental income drops slightly to $11,004. The implied gross yield in this scenario is approximately 5.01%, calculated similarly by dividing the annual rental income by the median home value.
The difference between these two yields is minimal, standing at just over 0.13 percentage points. However, the FMR scenario, yielding 5.14%, is more likely to reflect the actual rental income for Section 8 properties in ZIP 64494. This is because FMRs are specifically designed to ensure that rental incomes meet a minimum standard, thus providing a more reliable estimate for government-subsidized housing.
Given the 20.0% renter density in the area, it's important to note that while this is relatively low, it still indicates a significant portion of the population renting homes. The lack of specific data on days-on-market (DOM) makes it challenging to assess how quickly a property might transition from being owner-occupied to rental. However, assuming a steady demand for rental properties, especially those participating in the Section 8 program, the higher FMR-based gross yield should be considered more realistic.
To summarize, the Section 8 cap-rate for ZIP 64494 implies a gross yield of about 5.14% based on the FMR, versus 5.01% based on the market rent. For investors, the FMR-based yield is the safer bet, considering the guaranteed income level set by the government.
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.