Location: St. Clair County, MO | Metro: St. Clair County, MO
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 | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $105,888 | 0.97% | C |
| 3BR | $1,230 | $181,877 | 0.68% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 64763, Lowry City, Missouri, provides valuable insights into potential investment returns. Using the Fair Market Rent (FMR) for a 2-bedroom apartment set at $950 annually for fiscal year 2026, and the market rent of $384 derived from the Census ACS data, we can calculate two distinct gross yields.
First, let's consider the scenario using the FMR. The annualized rent at $950 translates to a monthly rent of approximately $79.17. With a median home value of $154,945, the implied gross yield is calculated as follows:
Next, let's examine the market rent scenario. At $384 annually, the monthly rent is roughly $32. This leads to a significantly lower implied gross yield:
Given the 34.6% renter density in Lowry City, it's important to note that while a higher percentage of renters might suggest a strong demand for rental properties, the lack of Days on Market (DOM) data means we cannot fully assess how quickly properties are being rented out. However, the FMR scenario provides a more optimistic outlook on potential rental income, reflecting a gross yield of 6.27%, whereas the market rent scenario indicates a much lower gross yield of 2.5%.
In reality, the FMR scenario is likely more attainable for Section 8 properties, as it aligns with government-set guidelines intended to ensure fair compensation for landlords. The market rent scenario, while representing the average rent in the area, does not account for the guaranteed income stream that Section 8 provides. Therefore, the 6.27% gross yield is a more practical benchmark for investors considering Section 8 properties in ZIP 64763.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.