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 | $1,180 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,230 | $321,697 | 0.38% | F |
| 2BR | $1,500 | $204,150 | 0.73% | D |
| 3BR | $1,920 | $296,304 | 0.65% | D |
| 4BR | $2,220 | $403,761 | 0.55% | F |
| 5BR | $2,575 | $545,837 | 0.47% | F |
U.S. Census Bureau data (2024)
In Edwardsville, IL (ZIP 62025), the real estate market is poised to offer strong pricing power to landlords and small-portfolio investors over the next 12 to 24 months. The median home value stands at $326,545, indicating a stable housing market. Additionally, only 0.2% of listings have been reduced, which suggests that sellers are maintaining their asking prices, further reinforcing the idea that the local market is resilient.
The 10-day median days on market (DOM) reflects a quick turnover rate, signaling high demand for properties in this area. This combination of factors—stable home values, minimal price reductions, and swift sales—implies that landlords can maintain their rental rates without significant pressure to lower them.
On the rental side, the Fair Market Rent (FMR) for ZIP 62025 in fiscal year 2024 is set at $1,280. However, the actual market rent, as measured by Zillow's Observed Rental Index (ZORI), is currently at $1,439. This gap between the FMR and the ZORI suggests that there is room for landlords to charge slightly above the government-set fair market rate, given the current market conditions.
For long-hold investors, the appreciation thesis in Edwardsville is realistic but modest. With a median home value that has remained relatively steady and a low percentage of price reductions, it is reasonable to expect that property values will continue to appreciate at a gradual pace. Long-term investors should focus on the stability of the market rather than rapid growth, as the data does not indicate a surge in appreciation rates.
In summary, the current setup in Edwardsville's real estate market supports landlords and small-portfolio investors in maintaining competitive rental rates and expecting steady property value appreciation. The strong demand and stable home values provide a solid foundation for investment decisions in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.