Location: Polk County, MO | Metro: Polk County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 65663 reveals a complex rental market situation. The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 65663 for fiscal year 2024 is set at $800 per month. This figure can be annualized to provide a clearer picture of potential income. With an annual rent of $9,600 ($800 x 12), the implied gross yield based on the median home value of $339,686 would be approximately 2.83%. This calculation is derived by dividing the annual rent by the median home value.
However, the market rent for ZIP 65663 is currently not available, which makes direct comparison challenging. Given that the market rent is N/A, we cannot calculate a precise gross yield for this scenario. Nonetheless, it's important to consider that the actual market rent could potentially exceed the FMR, leading to a higher gross yield. For instance, if market rents were to be significantly higher, say around $1,200 per month, the annualized market rent would be $14,400, implying a gross yield of about 4.24%. This is a hypothetical example and should not be taken as a definitive market indicator without further data.
The 19.1% renter density suggests a relatively low proportion of renters compared to homeowners, which could indicate a competitive rental market where landlords might struggle to find tenants willing to pay market rates. Additionally, the N/A-day days on market (DOM) figure implies that there isn't enough recent data to determine how quickly properties are typically leased in this area, making it difficult to assess the liquidity of rental properties.
In conclusion, while the Section 8 scenario provides a stable, albeit lower, gross yield of 2.83%, the lack of market rent data makes it challenging to assert the superiority of one over the other definitively. Given the limited renter population and the absence of timely DOM data, the Section 8 option appears more reliable for securing a steady stream of rental income, albeit at a lower rate than what might be achievable in a more robust rental market.
Data Sources: FMR data from HUD (2027). 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.