Location: Stone 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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $260,794 | 0.38% | F |
| 3BR | $1,340 | $357,803 | 0.37% | F |
| 4BR | $1,530 | $476,352 | 0.32% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 65747, which encompasses Shell Knob, MO, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area as of fiscal year 2026 is set at $910, while the Census ACS data indicates that the average market rent in this region is $681. This creates a gap of $229, or approximately 34%, between what landlords could charge under the Section 8 guidelines and the prevailing market rate.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should view this scenario as a yield play. Voucher tenants, who are guaranteed rental payments through the Section 8 program, can provide a steady stream of income that is higher than the typical market rate. This means that landlords can potentially increase their cash flow by participating in the Section 8 program, even if they are renting to lower-income individuals. The median income in Shell Knob, MO, stands at $55,060, which aligns well with the income eligibility requirements for the Section 8 program.
The median home value in Shell Knob, MO, is $331,629, indicating that the area is primarily composed of owner-occupied homes, with only 11.6% of residents being renters. This low percentage of renters suggests that there may be limited competition for rental properties, making it advantageous for landlords to accept Section 8 vouchers to ensure their units remain occupied. Furthermore, the discrepancy between the FMR and the market rent can help cover the administrative costs associated with managing Section 8 properties, such as increased scrutiny and paperwork.
In conclusion, the gap between the FMR and market rent in Shell Knob, MO, presents an opportunity for landlords to enhance their yields by accepting Section 8 vouchers. Despite the lower overall percentage of renters, the financial benefits of receiving higher guaranteed rents can outweigh the potential drawbacks of participating in the program. Landlords should consider these factors when deciding whether to participate in Section 8 to maximize their investment returns.
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.