Real Estate Investing in Madison, Missouri (65263)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

Monroe County • Population: 1,479 • Data updated: September 2026

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Should you buy in 65263 (Madison, MO)? Our answer, based on the numbers below.

🏠 For Homebuyers
CAUTION
Grade D (52/100)

Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
1 flag
  • High vacancy: 26.3% of homes vacant — above national norms.

• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.

What’s happening in Madison, MO (65263)?

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3.0/ 5

Investability

Overall investment appeal

3.0/ 5

Appreciation

Long-term value growth

3.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $230,431
Avg Monthly Rent $801
1% Rule ✗ Does Not Meet
Median Income $51,200
% Renters 17.3%

Market Analysis: 65263 Madison

ZIP 65263 inside Monroe County looks affordable on the surface — median value of $230K — but the discount exists for reasons that a careful buyer should understand before committing.

If the plan assumes clean turnover, on-time rent, and low maintenance on a $230K asset, 65263 is the wrong submarket. If the plan prices in friction, the yield can still work.

Within MO, ZIP 65263 trails on several market indicators that neighboring Monroe County submarkets outperform. The gap is real and healthy enough to shape underwriting.

A healthy renter share of 17% in 65263 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.

tilts toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Madison:

C+ Average
Buy Confidence Score: 67/100
Affordability
15/25
Appreciation
22/25
Stability
7/20
Timing
8/15
Rental backup
15/15
Affordability
Moderate
Homes cost 4.5× the median income
Value Trend
Rising (+4.4%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $801/mo if you need to move
Market Conditions
BALANCED
Even conditions for buyers and sellers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.

Market Trends

Home Value History (with trend line)

$249K$220K$191K$162K$133K$104KJan 2012May 2019Jul 2026

📊 How Does 65263 Compare?

Metric 65263 Madison Missouri
Home Value $230,431 $230,431 $254,657
5-Year CAGR 5.3% 5.3% 7.0%
Avg Rent $801 $801 -
Cap Rate 2.7% 2.7% -
💡 Why Invest in 65263? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

📊 See where this ZIP ranks in our Best-of lists →
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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 65263 (Madison, MO). Anonymous, moderated, never written by AI.

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Investability
Good
Cap Rate
2.7%
Low
5yr Growth
+5.3%
Moderate

📊 Market Snapshot

Home Value $230,431
Monthly Rent $801
Price-to-Rent 24.0:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 4.2%
Cap Rate 2.7%
5-Year IRR 8.0%

📈 Home Appreciation

1-Year +4.4% ▲
3-Year CAGR +5.5% ▲
5-Year CAGR +5.3% ▲
10-Year CAGR +5.7% ▲

🏠 Rent Trends

1-Year N/A
3-Year CAGR N/A
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 2.7%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.7%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.

Run an IRR Analysis →

⚠️ Risk Signals

Composite view of factors that can impact a ZIP's stability and your downside risk.

Vacancy
26.3%
Elevated risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+5.3%
Stable
Eviction process: Fast Rent control: Favorable

Demographics in 65263

Population: 1,479

💰 Median Household Income
$51,200
This area
$51,200
State
$62,768
USA
$74,580
🏠 Renter Occupied
17.3%
This area
17.3%
State
23.7%
USA
34.0%
💼 Unemployment Rate
0.9%
This area
0.9%
State
-8.1%
USA
3.7%
🎓 College Educated
13.5%
This area
13.5%
State
8.6%
USA
33.7%
👤 Median Age
45.2 years
This area
45.2 years
State
20.4 years
USA
38.9 years
🏚️ Vacancy Rate
26.3%
This area
26.3%
State
18.8%
USA
10.5%
👥 Population by Ethnicity
White 92.0%
Other/Mixed 6.7%
Hispanic/Latino 4.4%
Black/African American 1.0%
Asian 0.3%
👶 Under 18
23.4%
This area
23.4%
USA
22.0%
👴 65 and Over
25.7%
This area
25.7%
USA
17.3%
📊 Poverty Rate
12.4%
This area
12.4%
USA
11.5%

Crime & Safety

🚧

Crime & Safety Data Coming Soon

We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.

Expected: Q1 2025

🎓 Schools in 65263

B Avg School Grade
3 Schools
7.5:1 Avg Class Size
$13,674 Avg Per Pupil

Schools in This ZIP Code

B+ Above Average

MADISON ELEM.

📚 Pre-K – 06 School
👥
110 Students
👨‍🏫
9.2:1 Class Size
💰
$13,674 Per Student
B Good

MADISON HIGH

📚 07 – 12 High School
👥
83 Students
👨‍🏫
9.4:1 Class Size
💰
$13,674 Per Student
B Good

MIDDLE GROVE ELEM.

📚 K – 08 School
👥
32 Students
👨‍🏫
3.9:1 Class Size
About Repit School Scores

Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.

We evaluate schools based on factors that research shows actually impact educational outcomes:

  • Class Size — Smaller classes mean more individual attention
  • School Funding — Resources available for programs, staff, and facilities
  • Community Factors — Neighborhood characteristics that influence student success
  • School Environment — Size, type, and structure

Scores are updated annually using federal education data.

🎓 Nearby Colleges & Universities

2 Nearby 1,928 Off-Campus Students
C
Central Christian College of the Bible
183 students · 11.7 mi
C
Moberly Area Community College
4,997 students · 12.7 mi

Investor Insight: With 1,928 students living off-campus nearby, this area has strong rental demand from the college population.

Frequently Asked Questions

What monthly rent should investors expect in Madison, MO?

Rental rates in Madison, MO average $801/mo. Tenant demand and $230K home values make the yield look reasonable by investor standards.

Are eviction rules reasonable in Madison, MO?

Madison, MO falls under MO landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.

Is real estate in Madison, MO a good investment right now?

Madison, MO rates 3.0/5 for investability. With median values at $230K and rents near $801/mo, the market offers reasonable fundamentals for rental investors.

Do landlords face vacancy issues in Madison, MO?

Expect elevated vacancy in Madison, MO. Rents at $801/mo are absorbed by the tenant base without meaningful lag.

Does a duplex house hack pencil in Madison, MO?

For house hackers, Madison, MO is a challenging. The $801/mo rent on a unit helps defray the mortgage on a $230K property.

You know 65263 now. You don’t know where it ranks.

This page stays free — all of it. What one page can’t tell you is how 65263 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.

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