Location: Phelps County, MO | Metro: Dent 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 | $740 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $172,828 | 0.56% | F |
| 3BR | $1,270 | $249,947 | 0.51% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 65462, Edgar Springs, MO, presents a unique scenario for both landlords and small-portfolio investors. With a median home value set at $222,998, the market signals stability, but the absence of percentage data on listings that have been reduced and the median days on market (DOM) suggest a less active selling environment. This combination points towards a buyer's market where pricing power leans towards the side of potential buyers rather than sellers.
On the rental side, the forward market rate (FMR) projected for the fiscal year 2026 stands at $890, while the current market rate, according to Census ACS data, is significantly lower at $511. This gap highlights an opportunity for long-term investors who can position themselves for future increases in rental demand and rates. The expected rise in rental prices could be driven by factors such as economic growth, population increase, or improvements in infrastructure that make the area more attractive.
For long-hold investors, the realistic appreciation thesis in ZIP 65462 revolves around the potential for rental income to grow closer to the FMR levels. This setup implies that holding onto properties for longer periods could yield better returns through increased rental income rather than rapid capital appreciation. The current discrepancy between the FMR and the actual market rent suggests a gradual upward trend in rental prices as the local economy adjusts and grows.
The combination of stable home values and a projected increase in rental rates provides a solid foundation for investment strategies focused on cash flow generation over time. Investors should consider the local economic conditions, including employment trends and any planned developments, which could further influence the housing and rental markets. By aligning their investments with the anticipated growth in rental income, long-hold investors can expect a steady and potentially improving financial performance from their properties in ZIP 65462.
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.