Location: Polk County, MO | Metro: Dallas County, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The ZIP code 65685, located in Polk County, Missouri, serves as a strong cash-flow anchor within a Section 8 portfolio strategy. This is evident when comparing the Federal Market Rent (FMR) set at $800 for the fiscal year 2024 to the local market rent, which stands at $1,167. The significant spread of $367 between these two figures indicates that landlords can effectively leverage the guaranteed rental income provided by the Section 8 program while still maintaining a substantial profit margin above the federal guidelines.
Further reinforcing its role as a cash-flow anchor is the median home value in the area, which is $234,010. This suggests a relatively stable housing market where property values are unlikely to fluctuate drastically, providing landlords with predictable returns on investment. Additionally, the median income of $51,394 supports the notion that tenants within this ZIP code are likely to qualify for the Section 8 program, ensuring a steady stream of eligible renters.
While the data does not provide specific percentages for price-cut shares or days on the market (DOM), indicating limited potential for appreciation plays, the 11.4% renter share highlights the importance of diversifying a portfolio. However, given the significant disparity between the FMR and market rent, along with the stable median home value, the primary focus should be on the cash-flow benefits rather than appreciation or diversification opportunities.
In conclusion, ZIP 65685 is best suited as a cash-flow anchor in a Section 8 portfolio strategy due to the substantial difference between the FMR and market rents, coupled with stable property values and a supportive median income level for tenant eligibility.
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.