Location: Lawrence County, 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 | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $329,335 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate for ZIP code 64873 provides insight into potential investment opportunities for landlords and small-portfolio investors. Based on the data, the Federal Market Rent (FMR) for a 2-bedroom apartment in ZIP 64873 for fiscal year 2024 is set at an annualized rate of $840. This figure contrasts with the market rent of $763, derived from the Census American Community Survey (ACS).
To calculate the gross yield, we divide the annual rental income by the median home value of $289,766. For the Section 8 scenario, using the FMR of $840, the gross yield is approximately 0.29%, calculated as follows: $840 / $289,766 = 0.0029 or 0.29%. On the other hand, the market rent of $763 yields a gross return of roughly 0.26%, calculated by: $763 / $289,766 = 0.0026 or 0.26%.
The implied gross-yield for both scenarios is quite low, indicating that investments in properties leased under the Section 8 program in ZIP 64873 might not be particularly lucrative compared to market rents. However, it's important to consider the stability of Section 8 payments versus the variability of market rents. Given the low renter density of 2.6%, the market rent scenario might be less realistic due to the limited pool of potential tenants willing or able to pay above the subsidized rate.
The N/A-day Days on Market (DOM) suggests there may be insufficient data to determine how quickly properties are rented out, which could imply challenges in finding tenants or maintaining occupancy rates. This uncertainty, combined with the low renter density, makes the Section 8 scenario more likely to be stable and predictable for landlords and small-portfolio investors, despite the lower gross-yield.
In conclusion, while the gross-yields for both the Section 8 and market rent scenarios are minimal, the Section 8 scenario offers a slightly higher gross-yield at 0.29% compared to the market rent at 0.26%. The predictability and stability of Section 8 payments outweigh the slight increase in gross-yield from market rents, especially considering the low tenant density in ZIP 64873.
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.