Location: Pettis County, MO | Metro: Johnson 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 | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $223,230 | 0.56% | F |
U.S. Census Bureau data (2024)
This gap means that landlords accepting Section 8 vouchers can expect to receive a higher rental income than what is currently typical in the open market. Given that only 21.5% of residents are renters and the median home value stands at $208,437, it indicates a relatively low-density rental market. However, with a median income of $71,500, many residents may still find themselves in need of affordable housing solutions.
The discrepancy between the FMR and the actual market rent suggests an opportunity for landlords to leverage the Section 8 program to increase their yields. Voucher tenants can provide a stable and reliable source of income, as the government covers a substantial portion of the rent. This can be particularly beneficial in areas where the rental market is not as robust, as is the case in ZIP 65337.
However, it's important to note that while the FMR provides a benchmark, landlords should consider the overall economic context. With a median income of $71,500, the ability of voucher holders to cover the difference between the FMR and the actual market rent may vary. Landlords must ensure they understand the local rental dynamics and the financial capabilities of potential tenants.
In conclusion, the gap between the FMR and market rent in ZIP 65337 presents a clear yield advantage for landlords participating in the Section 8 program. This can be a strategic move to capitalize on government subsidies while providing affordable housing options to those who need them most.
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.