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 | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $230,102 | 0.42% | F |
| 3BR | $1,340 | $265,096 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 65772, located in Seligman, Missouri, reveals an interesting picture when comparing the Fair Market Rent (FMR) and the market rent figures. Using the annualized 2BR FMR of $890 for fiscal year 2026, the implied gross yield for a property in this area would be approximately 3.3%. This is calculated by dividing the annual rent ($890 * 12 = $10,680) by the median home value of $268,173. The formula for this calculation is as follows: Gross Yield = (Annual Rent / Median Home Value) * 100.
In contrast, using the market rent figure of $658 per month from the Census ACS, the implied gross yield drops significantly to about 2.8%. This is derived by multiplying the monthly market rent by 12 months ($658 * 12 = $7,896), then dividing that amount by the median home value of $268,173. The lower gross yield reflects the current market conditions where rents are generally below the FMR set by the government.
Given the low renter density of 14.2%, it's important to note that many properties in ZIP 65772 may not be occupied year-round, which could affect the overall profitability of these investments. The N/A-day DOM (days on market) suggests that there might be limited data available regarding how quickly rental units are filled in this area, which could introduce uncertainty into the investment strategy.
Between the two scenarios, the market rent of $658 per month is likely more realistic for most investors. While the FMR of $890 represents a higher potential gross yield, it also assumes that all units can be rented at this rate, which may not be feasible given the local economic conditions and the relatively low demand for rentals. Therefore, investors should focus on the market rent scenario to ensure they have a more accurate expectation of 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.