Location: Joplin, MO | Metro: Joplin, 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 | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,930 | $230,996 | 0.84% | C |
| 4BR | $2,100 | $334,351 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 64834 reveals an interesting picture for potential investors. To begin with, let's look at the Federal Market Rent (FMR) for a 2-bedroom apartment, which is set at $1150 annually for fiscal year 2024. This translates into a monthly rental income of approximately $95.83 under the Section 8 program. Given the median home value in the area is $251,167, the implied gross yield for a Section 8 property would be around 4.6%, calculated by dividing the annual rental income ($1150) by the median home value ($251,167).
In contrast, the market rent for a similar 2-bedroom apartment stands at $1,297 per month according to the Census ACS data. This equates to an annual rental income of roughly $15,564, resulting in a significantly higher gross yield of approximately 6.2%. The calculation is straightforward: divide the annual market rent ($15,564) by the median home value ($251,167).
When comparing these two scenarios, it's clear that the market rent offers a better gross yield for investors. However, the decision should also take into account the 20.9% renter density in the area, which suggests that there is a notable portion of the population that might rely on rental assistance programs like Section 8. Despite this, the lack of data on the days on market (DOM) makes it difficult to assess how quickly properties might turn over or the competition faced by landlords.
Given the higher gross yield from market rents, it's advisable for investors to consider the feasibility of attracting tenants willing to pay the market rate. If the market conditions support such rents, the 6.2% gross yield would be more realistic. However, if the high renter dependency on assistance programs is indicative of broader economic challenges in the area, the Section 8 rate could be a safer bet, albeit with a lower gross yield of 4.6%.
Ultimately, the choice between accepting market rents or participating in the Section 8 program should be based on the investor's risk tolerance and the local rental market dynamics. While the market rent scenario provides a higher return, the stability offered by the Section 8 program might appeal to those seeking a more predictable cash flow.
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.