Location: Monroe 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 | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $131,030 | 0.73% | D |
| 3BR | $1,280 | $208,570 | 0.61% | D |
| 4BR | $1,500 | $256,296 | 0.59% | F |
U.S. Census Bureau data (2024)
Audrain County's ZIP code 65265, encompassing Mexico, MO, stands out due to its unique demographic and economic characteristics. With a population of 15,153, the area has a rental rate of 31.6%, indicating a significant portion of the community relies on leased properties. The median household income in this region is $56,969, while the median home value is notably higher at $185,279. This suggests that homeownership is more expensive relative to the average income, which could influence the local rental market dynamics.
The voucher economics in ZIP 65265 are particularly interesting. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $940, whereas the actual market rent, based on Census American Community Survey data, is lower at $693. This discrepancy means that landlords who accept Section 8 vouchers can potentially receive higher rents compared to the market average. However, it also implies that the demand for subsidized housing might be less pressing than in areas where the FMR is closer to the market rent, as the difference here is substantial.
Considering the data, ZIP 65265 appears to be in a transitional phase. The relatively high median home value alongside a moderate rental rate suggests that the area is experiencing shifts in housing preferences and affordability. As such, landlords and small-portfolio investors should be prepared for potential changes in tenant demographics and rental demands. The opportunity for slightly above-market rents through Section 8 vouchers could be a stabilizing factor in this transition, but it is important to monitor local trends closely to make informed decisions.
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.