Location: Bates County, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $179,825 | 0.61% | D |
| 3BR | $1,390 | $288,951 | 0.48% | F |
| 4BR | $1,820 | $391,325 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 64720 encompasses a portion of Adrian, Missouri, a small town with a total population of 4,494 residents. In this community, 21.6% of the inhabitants are renters, indicating a modest demand for rental properties. The median household income stands at $75,479, which is above the national average, suggesting that residents have a relatively strong financial standing. However, the median home value in the area is $275,355, which is lower than many comparable communities, pointing towards an overall affordable housing market.
Transitioning into the economic analysis of renting, the Fair Market Rent (FMR) for ZIP 64720 for fiscal year 2024 is set at $1,050. This figure contrasts sharply with the actual market rent, which is reported at $644 according to the latest Census ACS data. The discrepancy between the FMR and the market rent suggests a potential opportunity for landlords and investors who can leverage the higher voucher rates to increase their rental income while still offering affordable housing options to tenants.
Considering the practical implications for investors, ZIP 64720 aligns well with both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent means they can secure steady, government-backed income without the need for extensive property management. On the other hand, value-add buyers can find opportunities to improve the quality of rental units and potentially charge closer to the FMR rate, thereby increasing their profitability. The relatively low median home value also indicates that there might be room for improvement in property conditions, making it attractive for those looking to add value through renovations or upgrades.
In summary, Adrian, MO, encapsulated by ZIP 64720, offers a blend of affordability and government-supported rental rates that can cater to different types of real estate investors. Whether you're seeking a passive income stream or an active role in property enhancement, the economic landscape here presents viable opportunities.
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.