Location: Pulaski County, MO | Metro: Phelps 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 | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $157,199 | 0.66% | D |
| 3BR | $1,380 | $225,492 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 65550 in Missouri reveals some interesting insights when comparing the Federal Market Rent (FMR) and market rent figures against the median home value.
First, let's consider the annualized FMR for a 2-bedroom unit, which is set at $940 per month for FY 2026, based on metro area standards. This translates into an annual rental income of $11,280. Given the median home value of $196,599, the implied gross yield using the FMR would be approximately 5.74%. This calculation is derived by dividing the annual rental income ($11,280) by the median home value ($196,599).
Next, we'll look at the market rent figure of $820 per month, as reported by the Census ACS. When annualized, this comes to $9,840 per year. Using the same median home value of $196,599, the implied gross yield based on market rent would be about 5.01%. This yield is calculated by dividing the annual market rent ($9,840) by the median home value ($196,599).
The difference between these two yields highlights the potential benefits of participating in the Section 8 program. However, it's important to assess which scenario is more realistic given the local market conditions. With a renter density of 17.7%, it's clear that the demand for rental properties, particularly those covered under Section 8, is relatively low compared to other areas. This could affect the ability to consistently achieve higher rents through the Section 8 program.
The N/A-day DOM (Days on Market) indicates that there isn't enough data to determine how quickly properties are being rented out in this area. This lack of information makes it challenging to predict how long it might take to secure a tenant under the Section 8 program. Nevertheless, the higher gross yield of 5.74% using the FMR suggests that Section 8 can offer a more favorable return relative to the market rent yield of 5.01%.
Investors should keep in mind that while the FMR-based gross yield is higher, the actual net operating income (NOI) will depend on factors such as property management costs, vacancy rates, and maintenance expenses. The lower gross yield based on market rent might be more reflective of the true rental environment in ZIP 65550, considering the limited renter population.
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.