Location: Pulaski County, MO | Metro: Laclede County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 65534 reveals a challenging investment scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for FY 2026 is set at $1,000 annually. Given the median home value in the area is $232,347, we can calculate the implied gross yield for a property rented under the Section 8 program.
To determine the gross yield, we use the formula: Gross Yield = (Annual Rent / Property Value) * 100. Plugging in the values, the gross yield for a 2-bedroom apartment under Section 8 would be approximately 0.43%. This calculation is based on the assumption that the annual rent is equivalent to the FMR for a 2-bedroom unit, which is $1,000. The exact figure is derived from ($1,000 / $232,347) * 100 = 0.43%.
However, the market rent for a similar 2-bedroom property in ZIP 65534 is currently not available, indicated by N/A. Without this information, it's impossible to provide an accurate comparison between the Section 8 rent and the market rent. Nonetheless, it's important to note that the 7.7% renter density suggests a relatively low demand for rental properties, which could impact the ability to find tenants willing to pay market rates.
The N/A-day Days on Market (DOM) further complicates the analysis, as it indicates that there isn't enough data to determine how quickly properties are being rented out. This lack of information makes it difficult to assess the potential vacancy rate and the overall profitability of the property.
In light of these factors, the 0.43% gross yield under Section 8 appears to be the most concrete figure available. While this yield is quite low, it may still be attractive to some investors seeking stable, long-term income, especially considering the government-backed nature of Section 8 contracts. However, without knowing the market rent, it's unclear whether a landlord could achieve a higher gross yield by renting outside of the Section 8 program. The low renter density and incomplete DOM data suggest that finding a tenant willing to pay above the Section 8 rate might be challenging.
Investors should carefully consider these figures when evaluating the potential returns of a property in ZIP 65534. The low gross yield under Section 8 is a reality that must be weighed against the stability and security offered by such contracts. For those who decide to pursue non-Section 8 rentals, the difficulty in estimating market rents and tenant availability adds significant risk to the investment strategy.
Data Sources: FMR data from HUD (2027). 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.