Location: Ralls County, MO | Metro: Ralls 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 | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,210 |
| 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 | $191,809 | 0.5% | F |
| 3BR | $1,210 | $275,095 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 63436, located in Center, Missouri within the Ralls County area, is an ideal candidate for diversifying a Section 8 real estate portfolio. With a median income of $56,808, it provides a stable tenant pool that can consistently meet the rental requirements set by the Housing Choice Voucher program.
A key factor in considering ZIP 63436 as a diversifier is the low market rent compared to the Fair Market Rent (FMR) established by HUD for the $900 metro FY 2026. The median market rent stands at $321, which is significantly below the FMR. This creates a positive spread, ensuring that landlords receive a higher rent than what they would typically charge in the open market. Consequently, properties in this ZIP code act as a cash-flow anchor within a Section 8 portfolio, providing steady income without the risk of vacancy.
Additionally, the median home value in ZIP 63436 is $216,468. This figure indicates that the area is relatively affordable, attracting both homeowners and renters. The 8.3% renter share suggests a modest but stable demand for rental properties, further supporting the idea that ZIP 63436 serves as a diversifier in a Section 8 investment strategy.
In summary, ZIP 63436 is best suited as a diversifier within a Section 8 portfolio due to its stable tenant base, favorable rent-to-FMR ratio, and affordable home values. It ensures consistent cash flow while spreading risk across different types of investments.
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.