Location: Cedar County, MO | Metro: Cedar County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
The analysis for ZIP code 65607 reveals some limitations due to incomplete data, specifically the lack of median home values and current market rents. However, we can still provide a rough picture using the available Fair Market Rent (FMR) data for a 2-bedroom unit, which is set at $890 annually for FY 2026.
To derive the gross yield for a Section 8 property in this area, we need to calculate based on the annualized FMR. Assuming a median home value is needed to compute the gross yield, let's use hypothetical values for demonstration purposes only. If the median home value were hypothetically $178,000 (twice the annual rent), the implied gross yield would be around 5%. This calculation is purely illustrative since the actual median home value is not provided.
In the absence of market rent data, we cannot directly compare the Section 8 FMR to typical rental rates in the area. Without knowing the market rent, it's challenging to assess whether the Section 8 rate provides a competitive gross yield. Typically, a higher gross yield might indicate a better investment opportunity, but this depends on the overall cost structure, including maintenance, vacancy rates, and management fees.
The lack of specific renter density and days on market (DOM) figures further complicates a precise analysis. Generally, a higher renter density and shorter DOM suggest a more active rental market, which could influence the attractiveness of Section 8 properties. Given the missing data, it's difficult to conclude definitively which scenario is more realistic.
Investors should consider these factors when evaluating potential investments in ZIP 65607. The Section 8 program offers a stable income source, but the decision to invest should also account for the local rental market dynamics and property management considerations.
Data Sources: FMR data from HUD (2027).
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.