Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
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 | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $920 | $298,219 | 0.31% | F |
| 2BR | $1,120 | $143,187 | 0.78% | D |
| 3BR | $1,440 | $209,610 | 0.69% | D |
| 4BR | $1,660 | $234,896 | 0.71% | D |
| 5BR | $1,926 | $284,677 | 0.68% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP 62010, Bethalto, IL, are significant. Tenant turnover is a critical issue, as the market rent stands at $1,150 while the Fair Market Rent (FMR) for FY 2024 is set at $1,080. This discrepancy suggests that tenants may prefer to seek out higher-paying jobs or better rental opportunities, leading to frequent moves and increased vacancy periods. The vacancy exposure is further exacerbated by the lack of available data on the days-on-market (DOM), indicating uncertainty about how long units might remain vacant. Additionally, the deferred maintenance risk is substantial given the typical home value of $198,940 and the median income of $71,408. Landlords will need to be prepared to manage properties with limited cash flow for necessary repairs and upkeep.
Despite these challenges, there are compelling reasons to consider Section 8 investments in this area. The renter share is 17.5%, which is relatively high and suggests a strong demand for rental housing. High renter density typically correlates with a greater number of voucher holders looking for suitable accommodation. This demand can help stabilize occupancy rates and provide a steady stream of income through government subsidies, offsetting some of the financial risks associated with deferred maintenance and lower rents.
In conclusion, the risks for a first-time Section 8 landlord in ZIP 62010, Bethalto, IL, are moderate. While tenant turnover and deferred maintenance pose significant challenges, the high renter density offers a counterbalance by ensuring consistent demand for subsidized housing.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.