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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $138,147 | 0.85% | C |
| 3BR | $1,540 | $222,681 | 0.69% | D |
| 4BR | $1,670 | $301,130 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 64836 in Carthage, MO, reveals interesting insights into potential investment opportunities. With a median home value of $240,365, let's compare the annualized fair market rent (FMR) and market rent against this figure.
The annualized FMR for a 2BR unit is $930, which translates to an annual rental income of $11,160. This implies a gross yield of approximately 4.6% when calculated against the median home value. The formula for this calculation is simple: Gross Yield = (Annual Rental Income / Median Home Value) * 100. Thus, 4.6% is derived from ($11,160 / $240,365) * 100.
In contrast, the ZORI (Zillow Observed Rent Index) for a 2BR unit is $923, leading to an annual rental income of $11,076. When applied to the median home value, this results in a slightly lower gross yield of about 4.6%. The calculation here is identical: Gross Yield = ($11,076 / $240,365) * 100.
Given these figures, the gross yields are nearly identical, suggesting that the Section 8 rent is very close to market rates. However, the reality of investment in ZIP 64836 hinges on other factors such as renter density and days on market (DOM).
The renter density in Carthage is 33.3%, indicating a moderate level of demand for rental properties. Additionally, the average DOM of 35 days suggests that properties are relatively easy to lease out once they become available. These metrics support the notion that the market rent scenario might be more realistic due to the competitive nature of the rental market and the ease of finding tenants.
In conclusion, while the gross yields for both the FMR and market rent scenarios are nearly the same at around 4.6%, the market rent scenario appears to offer a more practical outlook given the local rental dynamics. Landlords and small-portfolio investors should consider these points when evaluating the potential returns of properties in ZIP 64836.
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.