Location: Wayne County, MO | Metro: Dent 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 | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $106,772 | 0.9% | C |
| 3BR | $1,150 | $179,648 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 63638, located in Ellington, MO, within the Wayne County, MO metro area, presents itself as a cash-flow anchor in a Section 8 portfolio strategy. The spread between the Fair Market Rent (FMR) of $890 for the metro area in fiscal year 2026 and the market rent of $656 indicates that properties in this area can be leased below the FMR threshold, ensuring a stable cash flow. Additionally, the median home value of $160,651 offers an entry point into the market that is relatively affordable.
While the median home value cited here differs slightly from the data available on some websites, which show a lower median home value of around $92,100, the principle remains consistent: the lower cost of housing allows landlords to generate positive cash flow even when renting to tenants who qualify for Section 8 assistance. This makes ZIP 63638 an attractive option for investors seeking reliable returns rather than rapid appreciation.
The data does not provide specific figures for appreciation plays, such as price-cut share or days on the market (DOM), suggesting that this area is not likely to see significant short-term gains in property values. Instead, the focus should be on the long-term stability and predictability of rental income.
ZIP 63638 also serves as a diversifier within a broader investment portfolio due to its 30.5% renter share and median income of $55,257. These figures indicate a moderate level of demand for rental properties and suggest that there is a sufficient number of potential tenants who could benefit from Section 8 vouchers. However, the primary role of this ZIP code in a Section 8 strategy is as a cash-flow anchor, given the favorable rent-to-value ratio and the ability to lease properties below the FMR threshold.
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.