Location: Stone County, MO | Metro: Stone 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 | $790 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $233,261 | 0.49% | F |
| 3BR | $1,580 | $347,925 | 0.45% | F |
| 4BR | $1,910 | $433,550 | 0.44% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 65686, encompassing Kimberling City, MO, and the Stone County, MO metro area, does not favorably align for potential investors. The Federal Market Rent (FMR) for Section 8 eligibility stands at $980 for fiscal year 2026, which is notably below the Census-reported market rent of $1,023. This discrepancy suggests that landlords may struggle to cover operational costs if relying solely on Section 8 payments.
Acquisition in this area is moderately affordable, with a median home value of $299,480. However, the lack of available data on days on market (DOM) and the fact that only 0.1% of listings have been subject to price cuts indicate a potentially sluggish market for property purchases. Landlords should be cautious about overpaying for properties, given these limited indicators of recent transaction activity.
Tenant demand in ZIP 65686 is relatively low, considering the total population of 4,256 and the fact that only 18.2% of residents are renters. This small rental pool could make it challenging to find suitable tenants, especially those who qualify for Section 8 assistance. Given the limited number of renters, competition among landlords could be fierce, further impacting the feasibility of renting properties at market rates.
Verdict: ZIP 65686 presents a challenging investment scenario for landlords and small-portfolio investors. The rent math is unfavorable due to the gap between Section 8 FMR and market rent, making it difficult to cover costs. While acquisitions are moderately priced, the slow market dynamics suggest caution in purchasing. Lastly, the low tenant demand and small rental population size imply a competitive environment for finding qualified tenants. These factors collectively indicate that investing in this ZIP code may not be advisable for those seeking stable, profitable rental income.
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.