Location: Randolph County, MO | Metro: Macon County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 65260 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. Specifically, the FMR for a unit in the metro area for fiscal year 2026 is set at $970, while the Census ACS data indicates a market rent of $783. This creates a gap of $187, representing an increase of approximately 23.9% over the market rent.
In this context, where only 12.7% of the population are renters, the median home value stands at $259,379 and the median income is $49,792. The higher FMR compared to the market rent means that landlords accepting Section 8 vouchers can potentially earn above-average yields. This is because the government pays the difference between the actual market rent and the FMR, ensuring landlords receive a higher rental income than what the market dictates. Thus, voucher tenants transform this ZIP into a yield play, providing an opportunity for landlords to profit more than they would from non-voucher tenants paying market rates.
However, it's important to note that accepting Section 8 vouchers also comes with its own set of challenges and considerations. Landlords must adhere to federal standards and undergo regular inspections, which can be costly. Additionally, the process of securing a tenant through the voucher program can be lengthy and bureaucratic, impacting cash flow and requiring patience. Despite these potential drawbacks, the financial incentive of receiving a higher rent amount makes this ZIP code particularly attractive for landlords and small-portfolio investors looking to maximize their returns.
Data Sources: FMR data from HUD (2027). 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.