Missouri Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in Missouri — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on Missouri rentals
Property tax
0.98%
effective rate on median home value
At 0.98% effective, the property tax burden is above the national median (rank 29 of 51). Bake the full annual tax bill into every underwrite; a 2% effective rate on a $400K home is $8,000 a year that has to come out of rent before mortgage.
State income tax
4.95%
top marginal rate
A top marginal rate of 4.95% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.
Security deposit rule
State law caps security deposits at 2 months' rent. Charging above the cap exposes the landlord to statutory damages in most states, so build lease templates that respect this ceiling from day one.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in Missouri
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Missouri’s 0.98% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Poplar Bluff, MO | $168,352 | $1,083 | $1,650 | $-208 |
| Sedalia, MO | $195,982 | $1,073 | $1,921 | $-382 |
| Joplin, MO | $226,857 | $1,312 | $2,223 | $-390 |
| Branson, MO | $249,303 | $1,422 | $2,443 | $-444 |
| Farmington, MO | $194,223 | $964 | $1,903 | $-454 |
| Fort Leonard Wood, MO | $230,766 | $1,136 | $2,262 | $-546 |
State median across the metros: $232,591 home, $1,078 rent, $-601/mo modeled cash flow.
Track your Missouri rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Missouri property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.