Location: Scotland County, MO | Metro: Scotland 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 | $840 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $83,176 | 1.15% | B |
| 3BR | $1,330 | $140,023 | 0.95% | C |
| 4BR | $1,610 | $160,403 | 1% | B |
U.S. Census Bureau data (2024)
The rent math in ZIP 63555, located in Memphis, MO, does not favor landlords. The Fair Market Rent (FMR) set at $890 for the fiscal year 2026 contrasts sharply with the actual market rent, which stands at $505 based on Census ACS data. This significant disparity indicates that landlords might struggle to charge rents high enough to cover costs and generate profit.
Acquisition in this area is relatively affordable, with a median home value of $118,543. However, the lack of available data on days on market (DOM) and the percentage of homes needing price cuts suggests a potentially stagnant market. Without these metrics, it's challenging to assess how quickly properties sell and whether they require reductions to attract buyers.
Tenant demand in ZIP 63555 is moderate. With a total population of 3,258 and 18.9% of residents being renters, the pool of potential tenants is limited. This low renter share implies that competition for rental units could be fierce among landlords, further pressuring rental rates.
In conclusion, while the acquisition cost in ZIP 63555 is reasonable, the mismatch between FMR and actual market rent, along with the limited number of renters, presents a challenging environment for landlords and small-portfolio investors. The low renter share and the difficulty in achieving higher rents suggest that returns on investment will likely be modest. Therefore, this area should be approached with caution and thorough local market research to ensure sustainable rental operations.
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.