Location: Randolph County, MO | Metro: Randolph 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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $212,972 | 0.51% | F |
| 3BR | $1,500 | $292,143 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 65239, located in Cairo, Missouri, reveals a unique blend of yield and stability that does not perfectly align with either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it falls into a category that could be described as moderately attractive for investment.
On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,020, while the local market rent is lower at $839. This suggests that there is potential for rental income slightly above the market average if properties can be managed efficiently to meet the higher FMR standards. The median home value in the area is $271,007, which provides a baseline for property acquisition costs.
Moving to the stability axis, the percentage of renters is relatively low at 4.6%, indicating that the majority of residents own their homes. While this might suggest less demand for rental properties, the lack of data on days on market (DOM) means we cannot definitively assess the liquidity of the rental market. Additionally, the median household income is $83,578, which is a positive indicator for the ability of residents to pay rent, contributing to the stability of cash flows.
Given these factors, ZIP 65239 presents an opportunity where yields are moderately favorable but not exceptionally high compared to other markets. Stability is somewhat compromised by the low percentage of renters, but supported by the median income level. For landlords and small-portfolio investors, this area offers a balance between potential returns and the risk of vacancy or non-payment. It is advisable to focus on properties that can command rents closer to the FMR to maximize yield, while also being mindful of the market's inherent characteristics.
To summarize, Cairo, MO, represented by ZIP code 65239, is neither a high-risk/high-reward flip-style market nor a guaranteed steady-cashflow zone. It stands as a middle-ground option, with specific figures guiding the assessment: $1,020 FMR, $839 market rent, $271,007 median home value, and $83,578 median income. These numbers indicate a moderate investment opportunity with balanced risks and rewards.
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.