Location: Lawrence County, MO | Metro: Lawrence 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 | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $175,502 | 0.59% | F |
| 3BR | $1,380 | $238,156 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 65707 (Miller, MO) provides valuable insights into potential investment opportunities. Based on the Fair Market Rent (FMR) for a 2BR unit set at $930 annually for fiscal year 2026, and the market rent reported at $972 annually according to the Census ACS, we can derive the implied gross yields against the median home value of $196,623.
First, let's calculate the gross yield using the Section 8 FMR. The annualized rental income based on the FMR would be $930 multiplied by 12 months, equaling $11,160. Dividing this by the median home value gives us an implied gross yield of approximately 5.68%. This calculation reflects the scenario where a landlord relies solely on the Section 8 program for rental income.
Next, consider the gross yield based on market rent. With an annualized market rent of $972 per month, or $11,664 per year, the implied gross yield is slightly higher at around 5.94%. This figure represents the potential return if a property were rented at market rates outside of the Section 8 program.
Given the 22.4% renter density in Miller, MO, it's important to note that the majority of homeownership is still prevalent, suggesting that the market rent scenario might be more realistic for landlords looking to maximize their returns. However, the N/A-day Days on Market (DOM) indicates that there isn't sufficient data to determine how quickly properties are leased, which could affect the reliability of the market rent estimate.
In conclusion, while the gross yields for both the Section 8 FMR and market rent scenarios are close, the market rent offers a marginally better return at 5.94% compared to the Section 8 FMR's 5.68%. For landlords and small-portfolio investors, this difference should be considered alongside other factors such as the stability of Section 8 payments and the ease of finding tenants willing to pay market rates.
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.