Location: New Madrid County, MO | Metro: New Madrid 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 | $1,180 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $52,467 | 1.83% | A+ |
| 3BR | $1,180 | $86,786 | 1.36% | A |
U.S. Census Bureau data (2024)
The classification of ZIP 63862, located in Lilbourn, Missouri, can be analyzed through the lens of yield and stability. Yield is determined by comparing the Fair Market Rent (FMR) to the actual market rent and home values. Stability is gauged by the percentage of renters, days on market (DOM), and median household income.
Yield Analysis: The FMR for the metro area in fiscal year 2026 is $890, which is notably higher than the market rent of $692. This indicates that properties in ZIP 63862 could potentially generate higher rental income compared to the local market rate. Additionally, the median home value of $62,122 suggests that there is significant potential for yield improvement through property flips or renovations. Landlords and small-portfolio investors could capitalize on the disparity between FMR and market rent to achieve higher returns on investment.
Stability Analysis: The percentage of renters at 39.4% is relatively low, indicating a smaller pool of potential tenants. However, the median household income of $43,940 suggests that while not high, it is sufficient to support the local rental market. The absence of data regarding days on market (DOM) makes it challenging to assess the speed at which properties are typically leased, but the lower renter percentage implies some level of volatility in tenant acquisition.
Based on these figures, ZIP 63862 leans towards being a high-yield/low-stability market. The significant gap between the FMR and the market rent presents an opportunity for increased cash flow, especially if properties are renovated or flipped to command higher rents. However, the lower percentage of renters and limited data on DOM indicate a less stable environment for consistent tenancy. This combination suggests that while there is potential for higher returns, investors must be prepared to manage the risks associated with tenant turnover and market fluctuations.
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.