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 | $680 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $146,559 | 0.67% | D |
| 3BR | $1,300 | $201,949 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 65483 in Houston, Missouri, reveals some key insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $920 annually. Meanwhile, the market rent based on Census ACS data stands at $690 annually.
To derive the gross yield, we must first calculate the annualized rental income for each scenario. For the FMR scenario, a 2-bedroom apartment would generate $920 per year. Dividing this by the median home value of $186,598 gives an implied gross yield of approximately 0.49%, or roughly 4.9% when expressed as an annual percentage. In the case of market rent, the annual income would be $690, leading to an implied gross yield of about 0.37%, or approximately 3.7% annually.
The gross yield calculation based on the FMR is more optimistic, suggesting that landlords could potentially achieve higher returns if they were to participate in the Section 8 program. However, the actual gross yield is likely to be closer to the market rent figure due to the lower demand for rentals in the area. With a renter density of only 27.9%, there is limited demand for rental properties, which could make it difficult to fill units at the higher FMR rate.
The N/A-day Days on Market (DOM) indicates that there is insufficient data to determine how quickly rental units are typically filled in this ZIP code. This lack of information makes it challenging to predict the vacancy rates accurately, which are crucial for calculating the Net Operating Income (NOI).
In conclusion, while the Section 8 program offers a higher gross yield of around 4.9%, the realistic market conditions suggest that landlords should expect a gross yield closer to 3.7%. Investors should carefully consider the local rental market dynamics and the potential challenges in filling units at the higher FMR rate before making investment decisions.
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.