Location: Marion County, MO | Metro: Lewis 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 | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $345,543 | 0.36% | F |
U.S. Census Bureau data (2024)
ZIP code 63454, located in Marion County, Missouri, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $890, while the current market rent stands at $808. This creates a positive spread of $82 per unit, which directly enhances cash flow. Additionally, the median home value in this ZIP code is $277,028, indicating a stable housing market that supports consistent rental income.
The primary reason for categorizing ZIP 63454 as a cash-flow anchor is the guaranteed rent through the Section 8 program. Landlords can rely on the government subsidy to cover the difference between the market rate and the FMR, ensuring steady income without the risk of vacancy. The $82 spread between the FMR and the market rent means that even if the market rate were to drop slightly, landlords would still receive the higher FMR rate, protecting against potential downturns in the local economy.
Furthermore, the median income in ZIP 63454 is $88,192, which suggests a relatively affluent population. While the renter share is only 4.2%, this does not detract from the cash-flow anchor status because the focus here is on the stability and predictability of income rather than rapid appreciation or high demand for rentals. In fact, the lower renter share can be advantageous, as it reduces competition among landlords for tenants, making it easier to maintain occupancy rates.
In summary, ZIP 63454 should be considered a cash-flow anchor due to the favorable spread between the FMR and market rent, the stability provided by the Section 8 program, and the overall economic health of the area. This makes it a reliable component of a diversified real estate investment strategy, especially for landlords and small-portfolio investors looking for predictable returns.
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.