Location: Barry County, MO | Metro: Barry 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 | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $152,585 | 0.63% | D |
| 3BR | $1,330 | $222,370 | 0.6% | F |
| 4BR | $1,440 | $280,117 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 65625, Cassville, MO, can be analyzed using the Fair Market Rent (FMR) and market rent figures available for two-bedroom units. The annualized FMR for a 2BR unit is set at $890 per month for FY 2026, while the Census ACS reports a market rent of $636 per month. Using these figures against the median home value of $217,712, we can derive the gross yields.
First, let's calculate the gross yield based on the FMR. Multiplying the monthly FMR by 12 gives an annual rental income of $10,680. Dividing this by the median home value ($217,712) results in a gross yield of approximately 4.9%. Next, using the market rent figure, the annual rental income would be $7,632, leading to a gross yield of about 3.5% when divided by the median home value.
The gross yield derived from the FMR is higher, at 4.9%, compared to the market rent-based gross yield of 3.5%. However, it is important to consider the actual rental density and market conditions. With a renter density of 20.0%, the market rent scenario appears more realistic because it aligns closer with the actual demand for rental properties in the area. The FMR represents a maximum allowable rent for Section 8 participants, which may not reflect the true market dynamics.
In conclusion, while the FMR suggests a higher potential gross yield, the market rent provides a more grounded perspective on what landlords and small-portfolio investors can realistically expect in terms of returns. The 3.5% gross yield from market rents is a more accurate representation of the current rental market in Cassville, MO, especially considering the limited rental density and the lack of data on days on market (DOM).
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.