Location: Texas County, MO | Metro: Texas 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 | $750 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $281,925 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 65444 reveals some key insights into the potential rental yields for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, as set by HUD for FY 2026, is $1,010 per month. This translates to an annualized rent of $12,120. Given the median home value in the area stands at $257,795, the implied gross yield using the FMR figure would be approximately 4.71%. This calculation is derived by dividing the annualized rent by the median home value.
In contrast, the Census Bureau's American Community Survey (ACS) reports a market rent of $630 per month for a similar property type. When annualized, this comes to $7,560. Using the same median home value, the implied gross yield based on the market rent figure is around 2.93%. This is significantly lower than the yield derived from the FMR.
Given the 20.4% renter density in ZIP 65444, it is important to consider the likelihood of finding tenants willing to pay the higher FMR rate versus the lower market rate. The day-on-the-market (DOM) statistic being listed as N/A suggests either insufficient data or that rentals move quickly once listed, which could indicate strong demand. However, the actual rental price paid by tenants often aligns more closely with the market rate rather than the FMR, especially when considering the broader economic context and the proportion of renters in the area.
Therefore, while the FMR provides a benchmark for government-subsidized housing programs, the more realistic gross yield for landlords and investors in ZIP 65444 is likely closer to the 2.93% derived from the market rent figure. This reflects the actual rental environment and tenant willingness to pay in the area. Investors should use these figures to inform their decisions regarding the acquisition and management of properties in this ZIP code, keeping in mind the nuances of the local rental market.
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.