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 | $740 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $69,887 | 1.43% | A |
| 3BR | $1,220 | $130,307 | 0.94% | C |
| 4BR | $1,310 | $191,758 | 0.68% | D |
U.S. Census Bureau data (2024)
ZIP code 63869 is situated in a small, close-knit neighborhood in Missouri, boasting a population of just 3,218 residents. With nearly 38.5% of the population renting their homes, it's clear that there is a significant demand for rental properties. The median household income in this area stands at $57,959, which provides a stable economic foundation for the local community. However, the median home value is notably lower at $113,628, indicating that this is an affordable living area.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $940. This figure contrasts with the actual market rent, which is recorded at $753 according to the Census ACS data. This discrepancy suggests that landlords could potentially increase rents to align more closely with the FMR without significantly deterring tenants.
The question then becomes whether ZIP 63869 is better suited for a hands-off voucher operator or a hands-on value-add buyer. Given the relatively low median home value and the significant gap between FMR and current market rents, a hands-on approach would likely yield higher returns. Value-add buyers can leverage the current economic landscape by improving property conditions and increasing rents to match the FMR, thereby capturing a larger share of the rental market. On the other hand, hands-off operators might find it challenging to compete with the potential for increased rents, as the existing market conditions do not fully reflect the economic capacity of the area.
In summary, ZIP 63869 presents a mix of affordability and potential for growth, making it particularly attractive for those looking to actively manage and improve their investment properties. The economic indicators point towards a viable opportunity for hands-on investors who can capitalize on the difference between current rents and the FMR, while also catering to a substantial portion of renters in the area.
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.