Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
U.S. Census Bureau data (2024)
The rent math for ZIP 62036 does not align favorably with the HUD's Fair Market Rent (FMR) standards. The HUD has set the FMR at $1090 for the fiscal year 2024, which is significantly higher than the actual market rent observed at $563 according to the Census ACS data. This discrepancy suggests that landlords and small-portfolio investors may struggle to justify higher rents based on current market conditions.
Regarding acquisition affordability, the data presents a challenge. With a median home value marked as N/A, it's impossible to provide a precise assessment of property values. Additionally, the average days on market (DOM) and the percentage of homes requiring price cuts (price-cut share), both listed as N/A, indicate a lack of recent transactional data. This absence of information makes it difficult to gauge the ease or difficulty of acquiring properties in this area.
Tenant demand in ZIP 62036 is relatively low. The area has a total population of 574, with only 9.4% being renters. This means there are approximately 54 potential tenants in the area, which is a small pool relative to the size of the population. Such limited demand could pose challenges for landlords looking to fill vacancies or maintain consistent rental income.
In conclusion, ZIP 62036 presents several hurdles for real estate investment. The disparity between the HUD's FMR and the actual market rent indicates that landlords might have to lower their expectations regarding rental income. The lack of data on median home values, DOM, and price-cut share suggests an opaque market for acquisitions, which can be risky for investors. Lastly, the low tenant demand poses a significant challenge for maintaining occupancy rates. These factors collectively suggest that investing in this ZIP code would require careful consideration and possibly a different investment strategy to mitigate risks associated with low returns and occupancy.
Data Sources: FMR data from HUD (2027). 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.