Location: St. Clair County, MO | Metro: Hickory 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 | $710 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $222,480 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 65774 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $890, whereas the Census ACS data shows the average market rent at $556. This means there is a gap of $334, which translates to approximately 59.9% of the market rent being subsidized by the government through the Section 8 program.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage the Section 8 program to achieve higher yields. By accepting voucher tenants, you can effectively increase your rental income to match the FMR of $890, thus closing the gap and enhancing profitability. Given that only 25.8% of residents are renters, the demand for affordable housing is lower, making it advantageous to cater to voucher holders who are guaranteed a portion of their rent by the government.
The median home value in the area is $182,712, indicating a moderate property price point. Coupled with the median income of $31,674, it becomes evident that many residents struggle to afford market-rate rents. Therefore, the Section 8 program serves as a critical lifeline for potential tenants, ensuring they can live in the area despite economic constraints.
However, it's important to note that while the FMR provides a higher rental rate, the administration of Section 8 vouchers can introduce additional costs and complexities. Landlords must comply with HUD standards, undergo regular inspections, and potentially face delays in receiving rent payments. Despite these challenges, the financial benefit of renting at the FMR level rather than the market rate of $556 makes it a compelling strategy for maximizing returns.
To summarize, the gap between the FMR and market rent in ZIP 65774 presents a unique opportunity for landlords to secure higher yields through the Section 8 program. With a median income of $31,674 and a median home value of $182,712, the economic landscape supports the viability of this approach. Accepting voucher tenants allows you to capitalize on the government subsidy, bridging the $334 gap and achieving a more profitable rental income.
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.