Location: Randolph County, MO | Metro: Randolph 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 | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $130,386 | 0.74% | D |
| 3BR | $1,330 | $226,506 | 0.59% | F |
| 4BR | $1,550 | $291,502 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP 65259, Huntsville, MO, can be derived using the Fair Market Rent (FMR) and market rent figures for a two-bedroom property. The annualized FMR for a two-bedroom unit is $890 per month, or $10,680 annually (FY 2026, metro). The market rent, based on Census ACS data, is $706 per month, or $8,472 annually.
To calculate the implied gross yield, we use the median home value of $208,430. For the FMR scenario, the gross yield is calculated as follows:
The gross yield represents the annual rental income as a percentage of the property's value. In ZIP 65259, the gross yield for properties participating in the Section 8 program is 5.12%, while the gross yield for market rent is 4.06%. This means that a landlord could potentially earn a higher return by renting to Section 8 tenants rather than at market rates.
However, the actual gross yield an investor might achieve depends on various factors, including vacancy rates, maintenance costs, and the local rental market conditions. Given the 24.2% renter density, it suggests a relatively low demand for rentals compared to owner-occupied homes. The N/A-day Days on Market (DOM) indicates that there is insufficient data to determine how quickly rental properties are typically leased in this area, which adds uncertainty to the analysis.
Considering these factors, the FMR-based gross yield of 5.12% appears more optimistic and may not reflect the true rental environment in ZIP 65259. Landlords should be cautious about relying solely on this figure and consider the realistic market conditions when evaluating potential investments. The market rent gross yield of 4.06% provides a more conservative estimate and aligns better with the actual rental activity in the area.
In conclusion, while the Section 8 program offers a higher gross yield, the lower renter density and uncertain DOM suggest that achieving this rate may be challenging. Investors should carefully assess the local market dynamics before making investment decisions.
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.