Top 5 Residential Real Estate Investment Markets in Missouri

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By Trent Seigfried Updated June 6, 2024
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Edited by Michael Yessis

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Higginsville is home to the best residential real estate investment market in Missouri.

The 64037 zip code in Higginsville presents the greatest opportunity for investors among the 1,092 individual real estate markets in Missouri we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.

Top 5 Missouri residential real estate markets

RankCity InvestScore Affordability Property value appreciation
1Higginsville1002.256.52%
2Lexington98.22.056.44%
3Kansas City97.12.987.74%
4Dixon93.13.062.51%
5Berkeley92.92.571.96%
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1. Higginsville

We've identified the 64037 zip code in Higginsville as Missouri's best real estate investment market. Here's why.

πŸ”Ž Key data about Higginsville

Data pointValueRank in state (of 1,092 markets)
Zip code64037N/A
InvestScore 100Highest
Typical property value $192,002[1]90th lowest
Five-year appreciation 56.52%[2]71st highest
Household income $87,561[3]51st highest
Affordability ratio 2.216th most affordable
Five-year population growth 3.6%[4]105th highest
Unemployment rate 1.8%[5]18th lowest
Property taxes $1,289[6]95th lowest
Educational attainment 26.7%[7]120th highest
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Higginsville (zip code 64037) is the best residential real estate investment market in Missouri. It has the 71st highest property value appreciation among markets we evaluated, with a 56.52% appreciation of the typical property over the last five years.

Higginsville is the 16th most affordable market among the 1,092 Missouri markets we evaluated, with an affordability ratio of 2.2.

2. Lexington

The 64067 zip code in Lexington is Missouri's second-best residential real estate investment market.

πŸ”Ž Key data about Lexington

Data pointValueRank in state (of 1,092 markets)
Zip code64067N/A
InvestScore 98.22nd highest
Typical property value $173,017[8]73rd lowest
Five-year appreciation 56.44%[9]72nd highest
Household income $84,914[10]61st highest
Affordability ratio 2.014th most affordable
Five-year population growth 10.8%[11]40th highest
Unemployment rate 3.5%[12]98th lowest
Property taxes $1,499[13]128th lowest
Educational attainment 22.7%[14]149th highest
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The 64067 zip code in Lexington features a typical property value of $173,017, the 73rd lowest in the state.

Property values have appreciated 56.44% over the past five years, the 72nd highest increase among evaluated markets in the state. Lexington homes have an affordability ratio of 2.0, the 14th most affordable in the state.

3. Kansas City

The 64124 zip code in Kansas City comes in at No. 3 in our ranking of residential real estate investment markets in Missouri.

πŸ”Ž Key data about Kansas City

Data pointValueRank in state (of 1,092 markets)
Zip code64124N/A
InvestScore 97.13rd highest
Typical property value $116,509[15]28th lowest
Five-year appreciation 87.74%[16]7th highest
Household income $39,885[17]250th highest
Affordability ratio 2.952nd most affordable
Five-year population growth 5.2%[18]90th highest
Unemployment rate 3.9%[19]126th lowest
Property taxes $701[20]22nd lowest
Educational attainment 18.4%[21]196th highest
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With a typical property value of $116,509, Kansas City's 64124 zip code features the 28th lowest property values in the state.

Kansas City homes have an affordability ratio of 2.9, the 52nd most affordable among the markets we evaluated.

4. Dixon

The 65459 zip code in Dixon ranks No. 4 among Missouri's residential real estate investment markets.

πŸ”Ž Key data about Dixon

Data pointValueRank in state (of 1,092 markets)
Zip code65459N/A
InvestScore 93.14th highest
Typical property value $191,371[22]89th lowest
Five-year appreciation 62.51%[23]41st highest
Household income $63,830[24]41st highest
Affordability ratio 3.063rd most affordable
Five-year population growth 15.3%[25]29th highest
Unemployment rate 3.9%[26]126th lowest
Property taxes $991[27]50th lowest
Educational attainment 13.2%[28]250th highest
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Property values in Dixon's 65459 zip code have seen the 41st highest increase among evaluated markets in the state, with an appreciation of 62.51% over the past five years.

Dixon's affordability ratio of 3.0 makes it the 63rd most affordable among the 1,092 markets we evaluated.

5. Berkeley

The 63134 zip code in Berkeley rounds out our top five residential real estate investment markets in Missouri.

πŸ”Ž Key data about Berkeley

Data pointValueRank in state (of 1,092 markets)
Zip code63134N/A
InvestScore 92.95th highest
Typical property value $98,556[29]16th lowest
Five-year appreciation 71.96%[30]17th highest
Household income $39,797[31]17th highest
Affordability ratio 2.527th most affordable
Five-year population growth 1.7%[32]135th highest
Unemployment rate 3.7%[33]112nd lowest
Property taxes $1,328[34]100th lowest
Educational attainment 15.2%[35]231st highest
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Property values in Berkeley's 63134 zip code rose 71.96% over the last five years, ranking the city 17th highest among evaluated markets in Missouri.

Berkeley homes have an affordability ratio of 2.5, the 27th most affordable among the markets we evaluated.

How we rank residential real estate markets in Missouri

We evaluated 1,092 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Missouri.

What is InvestScore?

InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.

  • Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
  • Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
  • Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
  • Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
  • Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
  • Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
  • Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
  • Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates  local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.

Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

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Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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