Location: Texas County, MO | Metro: Crawford 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 | $740 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $770 | $127,568 | 0.6% | D |
| 2BR | $1,010 | $123,504 | 0.82% | C |
| 3BR | $1,200 | $200,219 | 0.6% | F |
| 4BR | $1,510 | $259,473 | 0.58% | F |
| 5BR | $1,752 | $291,032 | 0.6% | D |
U.S. Census Bureau data (2024)
ZIP 65560 (Salem, MO, Texas County, MO metro) fits well into a Section 8 portfolio strategy as a cash-flow anchor. With a median home value of $161,100, it is significantly below the $900 FMR (Fair Market Rent) for the metro area in fiscal year 2026. The spread between the FMR and market value provides a buffer that ensures positive cash flow even if rental rates do not fully cover mortgage payments.
The rental market in ZIP 65560 is robust, with 24.2% of the population renting homes. The median monthly rent for a four-bedroom home is $1,060, which is competitive given the median home value and indicates strong demand among tenants. The property tax rate in Salem is relatively low at $6.45 per $1,000 of assessed value, reducing the financial burden on landlords. Furthermore, the median household income of $56,250 supports the ability of residents to afford rent.
While ZIP 65560 does offer some potential for appreciation, with a recent increase of 17.1% over the last year, the focus should be on its role as a steady cash flow generator due to the favorable spread between FMR and market value. This ZIP code provides a solid foundation for landlords and small-portfolio investors seeking reliable returns.
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.