Independence, MO — Rental Investment Analysis

Investment Summary

As of 2026, rental properties in Independence, MO yield a 5.2% cap rate. Median home price is $227,587 with 3-bedroom rents at $1,500/month.

Independence is a moderate market — workable but not exceptional for cash flow. At $227,587 median home price, Independence is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,500/month, the 5.2% cap rate tells the story. Cash flow is deeply negative at -$237/month with standard assumptions. This market requires appreciation to justify the investment.

At 0.70% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.81 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.

Bottom line: Independence offers a balance of moderate cash flow and growth potential. Good for investors who want some income while building equity over time.

Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.