Location: Oregon County, MO | Metro: Oregon County, MO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 65690 provides insight into the potential returns for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $890 annually for fiscal year 2026, the implied gross yield can be calculated using the median home value of $213,424.
To derive the gross yield, we first need to understand that the FMR represents the maximum rental subsidy paid by the government. If we assume a landlord rents out a property at the FMR rate, the annual rental income would be $890 multiplied by 12 months, totaling $10,680. Dividing this by the median home value gives us an implied gross yield of approximately 5%. This calculation is straightforward and based on the provided data points.
However, the market rent is listed as N/A, which complicates the analysis. Without a specific market rent figure, it's challenging to provide a precise gross yield for the scenario where a property is rented at market rates. Typically, market rents exceed FMRs, suggesting a higher gross yield. Given the lack of data, we cannot state a definitive figure, but it's reasonable to infer that the actual gross yield could be higher than the 5% derived from the FMR.
The renter density of 14.5% indicates a relatively low proportion of renters in the area compared to homeowners. This factor might influence the demand for rental properties, including those rented through Section 8. Additionally, the N/A-day Days on Market (DOM) suggests incomplete data regarding how quickly properties are rented, which is crucial for understanding vacancy rates and thus the overall profitability of rental investments.
In conclusion, the Section 8 cap-rate scenario for ZIP 65690 based on the FMR yields an approximate gross yield of 5%. This figure serves as a baseline for investors considering participation in the Section 8 program. While the market rent scenario likely offers a higher gross yield, the exact amount remains undetermined due to the absence of specific market rent data. The low renter density and unclear DOM data suggest that market conditions may impact the attractiveness of rental investments, including those under the Section 8 program. Investors should carefully consider these factors when making investment decisions.
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.