Location: Vernon 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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $204,845 | 0.66% | D |
U.S. Census Bureau data (2024)
ZIP 64783, located in Vernon County, MO, serves as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is $920, while the current market rent is $828, indicating a favorable rent-to-price ratio. This ZIP has a median home value of $144,136, which aligns well with the FMR spread.
The cash flow potential is evident with a cap rate of 4.7%, which is above the current 30-year fixed mortgage rate of 6.30%. Although leverage negatively impacts cash returns, the overall rental yield potential remains strong at 7.2%. This makes the ZIP suitable for income-focused investors who can manage the higher vacancy rate of 37.9% and lower median income of $39,679.
A key point for landlords and small-portfolio investors is the rent-to-price ratio of 13.9:1. This means that the monthly rent is significantly lower than the monthly mortgage payment, making it challenging to meet the 1% rule without significant subsidies. However, the FMR of $920 provides a buffer that supports positive cash flow when using Section 8 vouchers.
Despite the strong cash flow potential, appreciation in this ZIP is modest. The 5-year compound annual growth rate (CAGR) is only +4.6%, which is below the state average of 7.0%. Therefore, this ZIP is best suited for investors seeking stable cash flow rather than rapid appreciation.
In summary, ZIP 64783 is an excellent cash-flow anchor for a Section 8 portfolio. The combination of affordable home values and a favorable rent-to-price ratio ensures steady income, even with the challenges posed by lower median incomes and higher vacancy rates. Landlords and investors should focus on tenant selection and property management to maximize returns in this market.
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.