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 | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $142,683 | 0.67% | D |
| 3BR | $1,180 | $220,892 | 0.53% | F |
| 4BR | $1,400 | $249,599 | 0.56% | F |
U.S. Census Bureau data (2024)
ZIP code 63456 is located in Monroe City, MO, a small town with a population of 4,749 residents. The area has a significant rental market, with 38.3% of the population renting their homes. This indicates a mixed housing market where both homeowners and renters coexist. The median household income in the area is $64,160, which suggests that residents have a moderate level of financial stability. The median home value stands at $195,426, reflecting a modest residential property market.
Turning to the economic realities of renting, the Fair Market Rent (FMR) for ZIP 63456 is set at $890 for the metro area in fiscal year 2026. However, the actual market rent, as per the Census ACS data, is significantly lower at $671. This discrepancy highlights an opportunity for landlords who can position themselves between these two figures, potentially attracting tenants who qualify for Section 8 vouchers but are willing to pay slightly above the market rate.
The question of whether ZIP 63456 is suitable for a hands-off voucher operator or requires a hands-on approach depends on several factors. Given the modest income levels and median home values, a hands-off operator could manage properties effectively if they are already well-maintained and situated in desirable areas. However, for a value-add buyer looking to improve properties and increase rents, there is room to invest in renovations and upgrades to justify higher rental rates closer to the FMR. This strategy would be particularly effective in areas with high demand from voucher holders and other tenants seeking affordable housing options.
In conclusion, ZIP 63456 offers a balanced environment for real estate investment, especially in the context of Section 8 programs. Landlords should consider the potential for both passive management and active improvement based on their investment goals and the specific conditions of the properties in their portfolio.
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.