Location: Monroe County, MO | Metro: Columbia, 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 | $720 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $172,917 | 0.61% | D |
| 3BR | $1,420 | $264,635 | 0.54% | F |
| 4BR | $1,680 | $366,249 | 0.46% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 65240, Centralia, MO, does not work favorably for landlords. The Fair Market Rent (FMR) set at $870 for the fiscal year 2024 is significantly higher than the market rent reported by the Census ACS, which stands at $694. This discrepancy suggests that landlords might struggle to find tenants willing to pay the higher FMR rate, especially since the actual market conditions indicate a lower acceptable rent.
Acquisition in this area is moderately affordable. With a median home value of $276,899, potential investors can expect a reasonable entry cost. However, the lack of data on days on market (DOM) and the low 0.2% price-cut share indicate a stable market with little fluctuation in property values. This stability could be advantageous for long-term investments but less so for quick flips or short-term gains.
Tenant demand in ZIP 65240 is relatively low. The area has a total population of 8,830, with only 20.4% being renters. This translates to approximately 1,800 rental units, indicating a limited pool of potential tenants. Landlords should prepare for a competitive environment where attracting and retaining tenants will require attention to property maintenance and possibly offering amenities that appeal to renters.
In summary, while the acquisition cost in ZIP 65240 is within a reasonable range, the mismatch between FMR and market rent rates poses a challenge for landlords. Additionally, the low renter share suggests that tenant demand is limited. Therefore, landlords and small-portfolio investors must carefully consider these factors before investing in this area, focusing on long-term strategies and maintaining high-quality properties to attract the available tenant pool.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.