Location: Hickory County, MO | Metro: Benton 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 | $860 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $160,308 | 0.6% | F |
| 3BR | $1,330 | $225,972 | 0.59% | F |
U.S. Census Bureau data (2024)
ZIP code 65779 is a small, rural neighborhood located in Missouri. With a total population of 1,053, it has a relatively low density, which is characteristic of many rural areas. The rental market is modest, with only 21.3% of residents renting their homes. This indicates a predominantly owner-occupied community. The median household income in this area stands at $44,018, which is notably lower than the national average, reflecting the economic profile typical of rural regions. The median home value of $190,624 is also indicative of an affordable housing market, suitable for middle-income families.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for ZIP 65779, as set by HUD for metro areas in fiscal year 2026, is $890. However, the actual market rent, according to the Census Bureau's American Community Survey, is significantly lower at $450 per month. This disparity highlights a potential opportunity for landlords who can leverage the higher FMR to attract Section 8 tenants while charging below the HUD-set rates. For those considering investment in this ZIP code, the difference between FMR and market rent suggests a favorable environment for rental properties, especially those catering to low-income families through the Section 8 program.
The question then becomes whether this ZIP code is better suited for a hands-off voucher operator or a hands-on value-add buyer. Given the low population density and the modest size of the rental market, a hands-off approach might be challenging due to the limited number of potential tenants and the need for active management to ensure compliance with HUD regulations. On the other hand, a hands-on investor could take advantage of the lower market rents and the higher FMR to improve property values and rents over time, potentially increasing the profitability of their investments. This strategy would involve renovating properties and possibly seeking ways to increase the rental rate closer to the FMR, all while maintaining eligibility for the Section 8 program.
In conclusion, ZIP 65779 offers a niche market for real estate investors interested in the Section 8 program. While the area's economic indicators suggest affordability and a smaller scale of operation, the significant gap between FMR and market rent presents a unique opportunity. Investors should consider a hands-on approach to maximize returns and manage properties effectively within the constraints of the program.
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.