Location: Callaway County, MO | Metro: Callaway County, MO 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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $292,646 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 65063 reveals a unique balance between yield and stability that could be attractive to both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area stands at $1010 for fiscal year 2024, which is notably higher than the market rent of $859. This discrepancy suggests a potential opportunity for higher rental yields.
To quantify the yield potential, consider the following: if an investor purchases a property valued at $326,335 and rents it out at the FMR rate of $1010, the annual gross rental income would be approximately $12,120. Assuming a typical mortgage payment of around 4% of the property value, the yearly mortgage cost would be roughly $13,053. However, the actual mortgage rate can vary based on interest rates and down payments. Even with conservative estimates, the higher-than-market FMR offers a compelling case for rental yield.
Regarding stability, ZIP 65063 has a 21.4% share of renters, indicating a moderate level of tenant demand. While the exact number of days on the market (DOM) is not available, the median household income of $77,957 provides insight into the financial health of potential tenants. This income figure suggests that residents have a reasonable ability to pay rent, contributing to the stability of rental cash flows.
To summarize, ZIP 65063 leans towards being a steady-cashflow zone. The primary drivers for this classification are the relatively high FMR compared to the market rent, combined with a moderate renter population and decent household incomes. These factors indicate a market where landlords can expect consistent, though not exceptionally high, returns on investment without significant risk. For those looking to maximize yields through aggressive pricing strategies, the gap between FMR and market rent presents an opportunity, but the moderate stability metrics suggest a need for careful tenant screening and management practices.
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.