Location: St. Joseph, MO | Metro: St. Joseph, MO-KS MSA
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 | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $151,739 | 0.94% | C |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 66024 reveals an interesting dynamic between government-subsidized rental income and market rents. Using the Fair Market Rent (FMR) for a 2-bedroom unit at $930 per month as set by the Department of Housing and Urban Development (HUD) for fiscal year 2024, the annualized rental income would be $11,160. Given the median home value of $109,057 in this area, the implied gross yield for a Section 8 property would be approximately 10.23%. This calculation is based on the formula: Gross Yield = (Annual Rental Income / Property Value).
Contrastingly, the market rent for a similar 2-bedroom unit, as reported by the Census Bureau's American Community Survey (ACS), stands at $902 per month. This translates to an annualized market rent of $10,824. When we apply the same gross yield formula using the market rent, the implied gross yield drops to about 9.92%.
The difference between these two gross yields is minimal, indicating that for ZIP 66024, there is little financial incentive to choose one over the other strictly from a yield perspective. However, the reality of the rental market must also be considered. With a renter density of 24.5%, it is evident that a significant portion of the population in this ZIP code is already renting. This suggests a strong demand for rental properties, making the market rent scenario more plausible.
The N/A-day DOM (Days on Market) data indicates that listings are either sold quickly or the data is incomplete, which could imply a competitive real estate market. In such a context, landlords might find it easier to attract tenants willing to pay market rates rather than relying solely on Section 8 vouchers, which can sometimes come with additional administrative burdens.
In summary, while the Section 8 FMR provides a slightly higher gross yield of 10.23% compared to the market rent yield of 9.92%, the actual performance of a property in ZIP 66024 is likely to be closer to the market rent scenario due to the existing high renter density and potentially swift real estate transactions. Investors should weigh the benefits of higher yield against the practical considerations of tenant management and market dynamics.
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.