Location: Hickory County, MO | Metro: Hickory 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 | $1,020 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $175,635 | 0.79% | D |
| 3BR | $1,920 | $232,906 | 0.82% | C |
U.S. Census Bureau data (2024)
ZIP 65668, located in Hermitage, MO, within the Hickory County, MO metro area, aligns well as an appreciation play within a Section 8 portfolio strategy. The fundamental metrics paint a picture of stability and potential growth.
The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,260. This is significantly higher than the local market rent of $880, indicating that properties in ZIP 65668 are undervalued relative to the government's rental standards. Despite the lower market rent, the median home value stands at $210,397, which is a reflection of the stable housing market in the region. The low price-cut share of 0.2% suggests that homes in this ZIP code do not often need to be discounted to sell, a sign of strong demand and value retention. The day-on-market (DOM) figure being N/A indicates that homes are selling quickly, without prolonged periods on the market, further supporting the idea of a robust local market.
As an appreciation play, ZIP 65668 offers the potential for capital gains over time, given the undervaluation relative to FMR and the strong fundamentals of the housing market. While the current market rent is lower than the FMR, this gap can be seen as an opportunity for future appreciation rather than a drawback. Landlords and small-portfolio investors should focus on acquiring properties that are likely to appreciate in value, as this can provide a long-term profit beyond just rental income.
The renter share of 21.7% and median income of $38,449 also support the appreciation play thesis. Although these figures suggest that there is a moderate demand for rental properties, they do not indicate a high concentration of renters compared to homeowners. This balance means that the rental market is steady but not overly saturated, allowing for healthy competition and demand. The median income figure, while modest, is sufficient to support the local market rent and indicates that residents have the financial capacity to sustain property values.
In conclusion, ZIP 65668 is best positioned as an appreciation play within a Section 8 portfolio strategy. The combination of undervalued properties relative to FMR, stable housing market fundamentals, and balanced renter and homeowner populations makes this ZIP code an attractive investment for those looking to capitalize on long-term value growth.
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.