Location: Benton County, MO | Metro: Benton 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 | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $229,759 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 65338 is centered around the significant gap between the Fair Market Rent (FMR) set at $1,000 for the fiscal year 2026 and the actual market rent of $744 based on Census ACS data. This represents a gap of $256, or approximately 34.4%, favoring the landlord's position.
Given that the FMR exceeds the market rent, properties participating in the Section 8 program can generate higher yields compared to those rented at market rates. For instance, a property renting at $1,000 under the Section 8 program would provide a landlord with a rental income that is 34.4% above the current market rate of $744. This scenario is particularly advantageous when considering the broader economic context of ZIP 65338, where 24.2% of residents are renters, and the median home value stands at $200,480.
The median household income in the area is $51,038, which suggests that many potential tenants might find it challenging to afford market rents without assistance. The Section 8 program, therefore, acts as a stabilizer, ensuring consistent and reliable rental income for landlords who might otherwise face challenges in finding tenants willing to pay market rates. Voucher tenants provide a predictable revenue stream that aligns with the higher FMR, making it a strategic choice for yield-focused investments.
However, it's important to note the implications of this gap. Landlords must understand that while the higher rent from the Section 8 program can be lucrative, there are also costs associated with maintaining properties to meet HUD standards and processing paperwork for the program. These factors should be considered when evaluating the overall profitability of Section 8 participation.
In summary, the gap between the FMR and market rent in ZIP 65338 makes it a compelling opportunity for landlords and small-portfolio investors looking to maximize their returns through a yield-focused strategy. The 34.4% premium over market rates can offset the administrative costs and ensure a steady income stream, especially in an area where a significant portion of residents rely on rental assistance.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.