Location: Taney County, MO | Metro: Stone 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $124,504 | 0.71% | D |
| 2BR | $1,150 | $207,711 | 0.55% | F |
| 3BR | $1,470 | $268,115 | 0.55% | F |
| 4BR | $1,630 | $385,191 | 0.42% | F |
| 5BR | $1,891 | $594,451 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 65616, Branson, Missouri, reveals key insights into the investment potential of properties in this area. To understand the gross yield, let's compare the Federal Market Rent (FMR) for a two-bedroom unit, which is set at $1,090 annually for fiscal year 2026, to the market rent, represented by the Zillow Observed Rent Index (ZORI), at $1,509 per month.
First, calculate the annualized FMR for a two-bedroom unit. The annual FMR of $1,090 implies a gross yield of approximately 0.43% when compared to the median home value of $254,176. This is derived by dividing the annual rent ($1,090) by the median home value ($254,176).
Next, consider the market rent scenario. With a monthly market rent of $1,509, the annual rent comes out to $18,108. This translates to a gross yield of about 7.13% when contrasted against the median home value. This calculation is made by dividing the annual market rent ($18,108) by the median home value ($254,176).
Given the 41.8% renter density and an average Days on Market (DOM) of 63 days, the market rent scenario appears more realistic for most investors. The high renter density suggests a robust demand for rental units, while the relatively low DOM indicates that properties are likely to be rented quickly, reducing the risk of vacancy. However, it is important to note that the Section 8 program has strict eligibility criteria and payment standards, which can limit the number of tenants willing to pay the higher market rent.
In conclusion, while the gross yield based on the FMR is significantly lower at 0.43%, the yield based on market rents is much more attractive at 7.13%. For landlords and small-portfolio investors looking to maximize returns, focusing on the market rent scenario is advisable, provided they can secure long-term tenants who are willing to pay the higher rate. Nonetheless, the presence of the Section 8 program offers a stable income source for those interested in government-assisted rentals, albeit with a lower gross yield.
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.