Location: Pettis County, MO | Metro: Cooper 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 | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,420 |
| 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 |
|---|---|---|---|---|
| 1BR | $830 | $82,440 | 1.01% | B |
| 2BR | $1,080 | $121,448 | 0.89% | C |
| 3BR | $1,420 | $211,289 | 0.67% | D |
| 4BR | $1,540 | $281,784 | 0.55% | F |
| 5BR | $1,786 | $379,617 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 65301 in Sedalia, MO, presents a moderate yield and stability scenario for Section 8 real estate investments.
Yield Analysis: The Fair Market Rent (FMR) for ZIP 65301 in fiscal year 2024 is set at $920, whereas the market rent stands at $968. Given the median home value of $182,079, the FMR represents a modest yield for landlords. However, the slight premium of market rent over FMR suggests that there is potential for higher returns if properties are rented outside the Section 8 program.
Stability Analysis: Stability in this market is driven by several factors including the percentage of renters, the average days on market (DOM), and the median household income. With 33.9% of residents being renters and an average DOM of 30 days, the market indicates a reasonable level of stability. Additionally, the median household income of $58,064 provides some assurance that tenants can manage their rent payments, although it is lower than the national average, which could impact stability.
The housing market in ZIP 65301 is somewhat competitive, with homes selling for a median price of $195K in March 2026, representing a 11.4% increase year-over-year. This suggests that while there is growth, it is not explosive, indicating a market that is neither overly speculative nor completely stable.
In conclusion, ZIP 65301 is best classified as a steady-cashflow zone, offering moderate yields without significant risk. The relatively low median income and competitive market conditions imply that while there is potential for steady returns, investors should be prepared for a market that requires careful management to maintain stability.
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.