Location: McDonald County, MO | Metro: McDonald 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $137,478 | 0.74% | D |
| 3BR | $1,410 | $213,089 | 0.66% | D |
U.S. Census Bureau data (2024)
Noel, Missouri, located in ZIP code 64854, is a small community with a total population of 4,910 residents. Over half of these residents, specifically 54.7%, are renters, indicating a significant demand for rental properties. The median household income in Noel is $44,490, which places it in a modest economic bracket. The median home value stands at $201,780, reflecting a relatively affordable housing market.
The rental landscape in Noel is characterized by a gap between the Fair Market Rent (FMR) and the actual market rent. According to HUD's FMR data for fiscal year 2026, the FMR for the metro area is set at $900. In contrast, the Census ACS reports the current market rent at $774. This discrepancy suggests that there is room for rental price increases, particularly for Section 8 properties, which can command higher rents due to the government subsidy.
Given the demographic and economic profile of Noel, it presents an opportunity for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the high percentage of renters and the affordability of the area make it suitable for managing Section 8 properties without extensive renovation efforts. However, for those looking to actively improve their investment portfolio, the potential to increase rents above the current market rate provides an incentive to invest in property upgrades. The modest income levels and the existing gap between FMR and market rent indicate that value-add strategies could be particularly effective in this ZIP code.
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.