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 | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $235,816 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 64863 in McDonald County, Missouri, reveals several key points for landlords and small-portfolio investors.
The rent math does not favorably align with the Fair Market Rent (FMR) set at $940 for the metro area in fiscal year 2026, compared to the actual market rent of $635 based on Census ACS data. This discrepancy indicates that landlords may struggle to cover costs and maintain profitability if they aim to charge rents at the FMR level.
Acquisition of properties in this ZIP code is relatively affordable, given the median home value of $197,434. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts suggests that there might be limited activity in the housing market, potentially indicating slower sales or fewer opportunities for quick property flips.
Tenant demand appears to be modest, with a total population of 1,586 and a renter share of 38.2%. The small number of potential renters could make it challenging to fill vacancies quickly, especially in a market where the majority of residents own their homes.
Verdict: ZIP code 64863 presents an opportunity for acquisition at a lower cost, but the mismatch between the FMR and actual market rent, along with the modest tenant demand, implies that profitability and occupancy rates may be less favorable. Landlords and investors should carefully consider these factors before entering the market, focusing on areas where the renter share is higher and the population size supports a steady demand for rental properties.
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.