Location: Livingston County, MO | Metro: Livingston County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 64664 reveals two distinct scenarios based on the Federal Market Rent (FMR) and the market rent figures provided. Using the annualized 2BR FMR of $900 for fiscal year 2026, the implied gross yield for a property valued at $239,132 would be approximately 3.76%. This calculation is derived from dividing the annualized FMR ($900 * 12 = $10,800) by the median home value ($239,132).
In contrast, when using the market rent figure of $1,031 per month, the implied gross yield increases significantly to about 5.12%. This is calculated by taking the annualized market rent ($1,031 * 12 = $12,372) and dividing it by the median home value ($239,132).
The higher gross yield associated with market rent reflects the potential profitability for landlords and small-portfolio investors who can command higher rents beyond what the Section 8 program offers. However, the reality of rental demand must also be considered. With only 14.8% of the population renting, the competition for tenants may be lower, potentially making the FMR scenario more realistic.
Despite the lack of specific data on days on market (DOM), the low renter density suggests that properties may not turn over frequently, reducing the urgency for landlords to accept Section 8 tenants solely for the sake of occupancy. Therefore, while the market rent scenario presents a more attractive gross yield, the FMR scenario might better represent the actual rental income landlords can expect in ZIP 64664.
To summarize, the gross yield for a Section 8 tenant in ZIP 64664 is roughly 3.76%, whereas the gross yield for a market rent tenant is approximately 5.12%. Given the low renter density, landlords should prepare for a situation where the FMR gross yield is more likely, though they can still aim for the higher market rent yields if possible.
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.