Location: McDonald County, MO | Metro: Barry 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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $183,792 | 0.59% | F |
| 3BR | $1,490 | $235,048 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 65745, encompassing Seligman, MO, along with parts of Barry County and McDonald County, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area is set at $1,000 per month for fiscal year 2026. This figure is notably higher than the average market rent of $886, based on Census ACS data. Consequently, landlords who participate in the Section 8 program will experience positive cash flow when renting their units at the FMR, as the average market rent is below the FMR.
To further understand the investment potential, consider the median home value of $242,868. This yields a rent-to-price ratio of approximately 0.36%, indicating that rental income is relatively low compared to the cost of property. However, the positive cash flow from Section 8 vouchers compensates for this disparity. For instance, a landlord renting a unit at the FMR of $1,000 would see a monthly surplus over the typical market rent of $886, translating into additional income without the need for premium units.
The dynamics between buying and renting in Seligman do not significantly impact the decision-making process for investors. There is currently insufficient data to provide a median days on market (DOM) or percentage of price cuts shared by sellers. These metrics are typically important for assessing the speed and ease of selling properties, but in this case, they do not affect the primary focus on rental income.
The strongest investor angle in Seligman's real estate market is cash flow. With the HUD FMR exceeding the average market rent, landlords can secure steady income from Section 8 tenants without risking vacancy due to high rents. This makes Seligman an attractive location for those seeking reliable rental returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.