Location: Columbia, 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 | $730 |
| 1 Bedroom | $940 |
| 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 | $250,220 | 0.42% | F |
| 3BR | $1,420 | $332,706 | 0.43% | F |
| 4BR | $1,680 | $479,671 | 0.35% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 65255, which encompasses Hallsville, MO, and is part of the Columbia, MO HUD Metro Fair Market Rent (FMR) area, reveals several key points for landlords and small-portfolio investors.
The rent math does not work in favor of landlords. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $870. However, the market rent, as per the Census American Community Survey (ACS), stands significantly higher at $1,139. This indicates that landlords might struggle to cover costs if they adhere strictly to the FMR guidelines, given the higher market expectations.
Acquisition of properties in this area is moderately affordable. The median home value is $361,116. While the exact number of days on market (DOM) is not available, the low percentage of homes that require a price cut (0.2%) suggests that once acquired, these properties are likely to hold their value well. This makes it a stable investment environment, though not particularly cheap compared to other areas.
Tenant demand in ZIP 65255 is relatively low. With a total population of 5,216, only 20.0% of residents are renters. This implies that landlords may face challenges in filling vacancies, especially given the high market rent that could deter potential tenants.
Verdict: ZIP 65255 presents a challenging environment for landlords due to the discrepancy between the HUD Fair Market Rent and the actual market rent. Acquisition is possible but not overly affordable, and the tenant demand is limited, which could lead to difficulties in maintaining occupancy rates. Landlords must carefully consider these factors before investing in this area.
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.