Location: Wright County, MO | Metro: Douglas 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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $119,347 | 0.91% | C |
| 3BR | $1,490 | $203,686 | 0.73% | D |
| 4BR | $1,670 | $279,362 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 65711, centered around Mountain Grove, MO, presents a significant opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,050, while the current market rent, as per Census ACS data, stands at $748. This creates a gap of $302, which translates to a 40.4% difference between what the government deems fair and what tenants are currently paying.
Given that the FMR exceeds the market rent, it becomes evident that voucher tenants can potentially increase rental yields for property owners. Landlords accepting Section 8 vouchers in Mountain Grove will receive a higher rent payment than the current market rate, thereby improving their financial returns. This scenario is particularly favorable considering the local economic conditions: Mountain Grove has a median income of $50,663 and a median home value of $192,531, indicating a need for affordable housing options. With only 23.3% of residents renting, there is a relatively untapped market for rental properties that can benefit from the higher FMR payments.
The higher FMR also addresses the challenge of providing adequate housing at below-market rates. While landlords might incur additional costs related to maintaining properties that meet the standards required by the Section 8 program, the increased rent from vouchers compensates for these expenses. This makes it financially viable for landlords to offer quality rental units to low-income families, knowing they will be compensated at a rate closer to the government's assessment of fair market value rather than the lower open-market rates.
In summary, the $302 gap between the FMR and market rent in ZIP 65711 represents a clear yield advantage for landlords willing to participate in the Section 8 program. It ensures that voucher tenants can afford decent housing without landlords having to absorb the difference between the market and FMR, thus making it a strategic investment for those looking to enter or expand in the rental market of Mountain Grove.
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.