Location: Randolph County, MO | Metro: Howard County, 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 | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $141,489 | 0.68% | D |
| 3BR | $1,290 | $271,266 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 65257, located in Higbee, Missouri, presents an interesting balance between yield and stability for real estate investors.
Yield: The Fair Market Rent (FMR) for ZIP 65257 in fiscal year 2024 is set at $1,010, which is significantly higher than the market rent of $729. This suggests that properties in this area can potentially attract higher rents through Section 8 vouchers, providing a strong incentive for landlords to participate in the program. Additionally, the average home value of $98,900 is notably lower than the $223,045 figure mentioned, indicating a potential opportunity for flipping homes at a profit. However, the lower home value also implies a less affluent market, where the average household income is $54,911. This income level supports the ability to pay the FMR but may limit the number of potential high-income tenants.
Stability: Only 14.3% of residents are renters, which could indicate a less stable market due to a smaller pool of potential Section 8 participants. The lack of data on days on market (DOM) makes it difficult to assess the speed at which properties are rented out. However, the relatively low household income suggests that there might be a consistent demand for affordable housing options, which could contribute to stability if the local economy remains steady.
Given these factors, ZIP 65257 leans towards being a high-yield/low-stability market. The significant difference between the FMR and market rent indicates a lucrative opportunity for landlords who can secure Section 8 vouchers. However, the limited percentage of renters and the lower average income suggest that while yields can be high, the stability of cash flow might be compromised compared to more affluent areas with a larger rental population.
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.