Location: Ralls County, MO | Metro: Pike 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 | $730 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $171,965 | 0.58% | F |
| 3BR | $1,230 | $275,959 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP 63441, located in Frankford, MO, within the Ralls County, MO metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The key to understanding its role lies in the significant spread between the Fair Market Rent (FMR) and the actual market rental rates.
The FMR for the Ralls County, MO metro area in fiscal year 2026 is set at $910. This figure represents the maximum amount that a landlord can charge for a Section 8 voucher holder. In contrast, the current market rental rate in ZIP 63441 stands at $385. This means that landlords participating in the Section 8 program can expect to receive a substantial subsidy of $525 per unit, significantly enhancing their cash flow. Despite the lower market rental rates, the median home value in the area is $276,076, indicating a stable housing market with solid property values.
While appreciation plays typically rely on rapid increases in property value and short days on market (DOM), ZIP 63441 does not offer these characteristics. The data indicates that there is no relevant percentage for price-cut shares and days on market, suggesting that the area does not experience quick turnovers or significant price fluctuations that would benefit such a strategy.
ZIP 63441 also offers limited potential as a diversifier. Although the renter share is 20.7%, which could provide some balance to a portfolio heavy in homeownership areas, the median income of $77,083 suggests that the majority of residents are not likely to be eligible for Section 8 assistance. Therefore, the diversification benefit is minimal compared to the strong cash-flow advantages.
In conclusion, ZIP 63441 is best suited as a cash-flow anchor due to the substantial difference between the FMR and the local market rental rates. Landlords can leverage this gap to ensure steady, predictable income streams, making it a reliable component of any Section 8-focused investment strategy.
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.