Location: Ralls County, MO | Metro: Marion 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 | $790 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $820 | $66,847 | 1.23% | A |
| 2BR | $1,070 | $109,210 | 0.98% | C |
| 3BR | $1,390 | $216,303 | 0.64% | D |
| 4BR | $1,430 | $267,745 | 0.53% | F |
| 5BR | $1,659 | $333,725 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 63401, which encompasses parts of Hannibal, Missouri, reveals a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for the metro area for fiscal year 2026 is $970, while the actual market rent, according to Census ACS data, is $806. This creates a gap of $164, or approximately 19%, between the FMR and the market rent.
Given that the FMR exceeds the market rent, properties in ZIP 63401 can be particularly attractive for voucher tenants. Landlords who accept Section 8 vouchers can expect a steady stream of rental income at rates above what the local market would typically bear. This makes the area a strong yield play, especially considering that only 32.8% of residents are renters, indicating a lower competition for rental properties.
The median home value in Hannibal is $173,692, and the median household income is $60,036. These figures suggest that there is a substantial portion of the population that might struggle to find affordable housing without assistance. For investors, the ability to secure rents at $970 through Section 8 vouchers means they can achieve higher yields compared to the typical $806 market rate, thereby compensating for any perceived risks associated with voucher tenants.
However, it's important to note that accepting Section 8 vouchers does come with certain obligations. Landlords must ensure their properties meet HUD's housing quality standards and may face some administrative overhead. Nonetheless, the financial benefits of receiving rental payments at a rate that surpasses the local market average make this a compelling option for those looking to invest in the Hannibal area.
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.