Location: Linn County, MO | Metro: Linn 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 | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $175,261 | 0.71% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 64653, located in the Linn County, Missouri metro area, does not work favorably for landlords or small-portfolio investors. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $950. However, the actual market rent, according to Census ACS data, is only $318. This significant gap between the FMR and the market rent suggests that properties in this ZIP code are overpriced compared to what tenants are willing to pay.
Acquisition of homes in this ZIP code is also not financially advantageous. With a median home value of $183,968, purchasing properties comes at a high cost. Unfortunately, the data on days on market (DOM) and the percentage of homes needing price cuts are not available, which could have further clarified the affordability and competitiveness of acquiring properties here. Nonetheless, the high median home value relative to the low market rent indicates that the initial investment required for property acquisition would be challenging to recoup through rental income alone.
Tenant demand in ZIP 64653 is minimal. The total population is 431, with only 13.1% being renters. This low renter share means there are fewer potential tenants, reducing the pool of individuals who might be interested in renting properties. Such limited demand can make it difficult to find and retain tenants, especially when the rental rates are set much higher than what the market supports.
In conclusion, ZIP 64653 presents a challenging environment for landlords and small-portfolio investors. The disparity between the FMR and the actual market rent, combined with the high median home value and low tenant demand, makes this area unattractive for investment purposes. Landlords would struggle to cover their costs and generate a profit, while small-portfolio investors would face difficulties in finding tenants and achieving financial returns. Therefore, it is recommended to avoid investing in this ZIP code unless there are compelling reasons unrelated to the financial aspects analyzed here.
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.