Location: Ozark County, MO | Metro: Howell 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 | $690 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $246,305 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 65626 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $890, while the Census ACS reports the market rent at $722. This means there is a gap of $168, representing approximately 19% of the market rent.
Given that the FMR exceeds the market rent, it is clear that voucher tenants can make this area a strong yield play for landlords and small-portfolio investors. Landlords can potentially charge higher rents to voucher holders without exceeding the FMR, thereby increasing their rental income above the local market rate. This discrepancy allows property owners to benefit financially from the government subsidy program, ensuring a steady stream of income that surpasses typical market levels.
In the context of ZIP 65626, where only 11.4% of residents are renters and the median home value stands at $243,539, the opportunity to leverage Section 8 vouchers becomes even more compelling. The relatively low percentage of renters suggests less competition in the rental market, making it easier to attract and retain voucher tenants. Additionally, the median income of $40,208 indicates that many residents may be eligible for the Section 8 program, further enhancing the potential yield for landlords who participate.
However, if the FMR were to fall below the market rent, which is not the case here, landlords would face the cost of housing voucher tenants below open-market rates. This scenario would reduce profit margins and potentially limit the financial benefits of renting properties to voucher holders. In such a situation, landlords might have to consider other strategies to maximize returns, including improving property management efficiency or diversifying their investment portfolio.
For now, the favorable gap between FMR and market rent makes ZIP 65626 an attractive market for landlords looking to capitalize on the Section 8 program. The ability to secure higher rents through voucher subsidies, combined with the low competition and high eligibility among residents, positions this ZIP code as a promising investment opportunity.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.