Location: Harrison County, MO | Metro: Daviess County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 64657 reveals some interesting insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, based on FY 2026 metro data, is set at $900 annually. Meanwhile, the Census ACS reports a market rent of $591 for the same type of unit.
To derive the implied gross-yield, we first annualize these figures. Using the FMR of $900, the gross yield for a property valued at $155,288 would be approximately 0.58%, calculated as follows:
$900 / $155,288 = 0.0058 or 0.58%
On the other hand, using the market rent figure of $591, the gross yield drops significantly to about 0.38%:
$591 / $155,288 = 0.0038 or 0.38%
Given the 15.4% renter density in ZIP 64657, it's important to consider how many units might actually be occupied by renters eligible for Section 8. This low density suggests that landlords should not expect a high proportion of their tenants to come from the Section 8 program. Additionally, the N/A-day DOM (days on market) indicates there is either insufficient data or a lack of transparency regarding how quickly properties are rented out in this area.
While the FMR scenario presents a higher gross yield, it is less realistic considering the low renter density. The market rent scenario, with its lower gross yield, aligns better with the actual rental environment in ZIP 64657. Investors should focus on the market rent figure when making investment decisions, as it reflects the true rental landscape more accurately.
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.