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 | $740 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $187,984 | 0.54% | F |
| 3BR | $1,310 | $252,469 | 0.52% | F |
| 4BR | $1,350 | $323,640 | 0.42% | F |
U.S. Census Bureau data (2024)
ZIP 63461, located in Palmyra, MO within Ralls County's metro area, presents itself as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910, which exceeds the local market rent of $805. This $105 spread ensures that landlords can secure higher rents through Section 8 vouchers compared to market rates, thus enhancing cash flow.
The median home value in ZIP 63461 stands at $238,210. However, given the nature of a cash-flow anchor, the focus should be on rental properties rather than home values. In this context, the higher FMR relative to market rent directly benefits landlords who participate in the Section 8 program, allowing them to maintain positive cash flow even when market conditions fluctuate.
This ZIP code does not offer significant potential as an appreciation play due to the lack of specific data on price-cut shares and days on market (DOM). These metrics would typically indicate whether property values are likely to increase over time. Without such information, it's difficult to make a case for appreciation in this area.
ZIP 63461 also serves as a diversifier within a broader investment portfolio. With a 24.0% renter share, there is a notable segment of the population relying on rentals, making it a stable market for long-term investments. Additionally, the median income of $69,707 suggests a steady economic base that supports both renters and homeowners, reducing the risk of vacancy and ensuring a reliable tenant pool.
In conclusion, ZIP 63461 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Landlords can leverage the higher FMR to ensure consistent, positive cash flow while diversifying their holdings with a stable rental market supported by a moderate median income.
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.