Location: Springfield, MO | Metro: Springfield, MO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 65897 provides insights into potential rental income scenarios for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, for fiscal year 2024, is set at $920 per month. This translates to an annual rental income of $11,040 per unit.
To calculate the implied gross yield, we need to consider the median home value. However, the median home value for ZIP 65897 is currently not available. Without this figure, we cannot provide a precise gross yield percentage. But we can still discuss the implications of the FMR in relation to market conditions.
In ZIP 65897, the entire housing stock is occupied by renters, indicating a 100.0% renter density. This high occupancy rate suggests strong demand for rental properties in the area. Unfortunately, the market rent for the area is also not available, which means we cannot directly compare it to the FMR to determine if Section 8 rents are below, at, or above market rates. Additionally, the Days on Market (DOM) data is not available, which would help us understand how quickly rental units are filled.
Given the FMR of $920 per month, landlords participating in the Section 8 program can expect a steady, government-backed income stream. While the exact gross yield cannot be calculated without knowing the median home value, the consistency of this income is valuable in a volatile real estate market. For investors, the FMR serves as a baseline for projected cash flows, although they should be aware that actual yields could vary based on property-specific factors such as maintenance costs, vacancy rates, and financing terms.
The absence of market rent data and median home value makes it challenging to assess the relative attractiveness of Section 8 versus market-rate rentals. However, the high renter density points towards a robust tenant pool, which could support higher market rents if the data were available. In conclusion, while specific gross yield comparisons cannot be made due to incomplete data, the consistent income from Section 8 can be a reliable option for landlords and investors in ZIP 65897.
Data Sources: FMR data from HUD (2027). 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.