Location: Scott County, MO | Metro: Cape Girardeau, MO-IL MSA
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 | $730 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $111,878 | 0.88% | C |
| 3BR | $1,250 | $160,423 | 0.78% | D |
| 4BR | $1,500 | $178,650 | 0.84% | C |
U.S. Census Bureau data (2024)
The real estate market in ZIP 63740, Chaffee, Missouri, presents a unique set of conditions that suggest a cautious approach to pricing power over the next 12 to 24 months. The median home value stands at $160,164, indicating a relatively affordable market compared to national averages. However, the absence of data regarding the percentage of listings that have been reduced and the median days on market (DOM) limit our ability to make precise forecasts.
The current snapshot suggests stability but not strong growth. Without reductions in listing prices and a stable DOM, it's reasonable to conclude that there isn't significant downward pressure on home values, nor is there robust upward momentum. This points to a market where pricing power will remain balanced, likely leading to modest increases in home values rather than rapid appreciation.
On the rental side, the Federal Market Rent (FMR) for ZIP 63740 is projected at $930 for fiscal year 2024, while the current market rent is estimated at $647 according to Census ACS data. This discrepancy highlights an opportunity for landlords and small-portfolio investors. Rents could potentially rise to meet the FMR, which would improve cash flow and investment returns. However, it also underscores the importance of maintaining competitive pricing to attract tenants in a market where rents are below the federal guideline.
For long-term investors, the setup in Chaffee implies a realistic appreciation thesis based on steady growth rather than speculative bubbles. With the median home value remaining stable and the potential for rental income to increase, the overall investment strategy should focus on value preservation and gradual appreciation. Investors should expect a conservative rate of return, driven by steady rental income growth and modest property value increases, rather than dramatic capital gains.
To summarize, the combination of a stable median home value, uncertain DOM and price reduction trends, and a gap between current market rents and FMRs signals a balanced market. Long-term investors can expect their investments to hold value and see gradual improvements in both property values and rental incomes, aligning with a conservative growth strategy.
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.