Location: Bates County, MO | Metro: Bates County, MO HUD Metro FMR Area
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 | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $149,901 | 0.73% | D |
| 3BR | $1,390 | $226,742 | 0.61% | D |
| 4BR | $1,820 | $282,611 | 0.64% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 64730 in Butler, Missouri, reveals a competitive rental environment. The HUD Fair Market Rent (FMR) for the area is set at $800 for the fiscal year 2024, which is below the market rent of $894 based on recent Census ACS data. This indicates that voucher tenants would generate marginal cash flow at the HUD FMR rate, as the market demands slightly higher rents. To achieve positive cash flow, landlords must either maintain their properties at a high standard to command a premium or seek ways to reduce operational costs.
The median home value in ZIP 64730 stands at $206,506, providing a useful benchmark for understanding the local housing market. Using this figure, we can calculate a rent-to-price ratio. With an annual rent of $10,728 (based on the market rent of $894 per month), the ratio is approximately 5.2%, indicating a relatively low cost of renting compared to buying. This suggests that owning property in Butler, Missouri, might be more attractive to potential buyers than renting, although the disparity is not significant enough to heavily impact the demand for rentals.
The data does not provide a median Days on Market (DOM) or a percentage share of homes that required price cuts, making it challenging to fully assess the rent-versus-buy dynamics. However, given the low median home value and the relatively modest difference between the HUD FMR and market rent, the stability of the rental market appears to be the strongest angle for investors. Stability is crucial for long-term investment strategies, especially when considering the conservative nature of many small-portfolio investors.
In conclusion, the strongest investor angle in ZIP 64730 is stability, as evidenced by the consistent HUD FMR and market rent figures, along with the moderate rent-to-price ratio. This stability ensures a reliable income stream from rental properties, which is particularly appealing for landlords and small-portfolio investors looking to avoid volatile markets.
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.