Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 62047 are defined by the SAFMR (Small Area Fair Market Rent) which for a two-bedroom apartment is set at $900 for fiscal year 2024. This SAFMR figure is specific to this ZIP code, meaning it is tailored to reflect the local rental market conditions accurately.
In contrast, the local market rent for a similar two-bedroom unit, according to the Census ACS, stands at $476. This discrepancy highlights the financial support available through the Section 8 program, which aims to make housing affordable for low-income families.
A landlord participating in the Section 8 program receives a voucher payment from the government to cover part of the rent. The total reimbursement includes the tenant's portion of the rent and utility allowances. Typically, the tenant is responsible for paying approximately 30% of their income towards rent, while the remaining amount is covered by the voucher.
To illustrate, if a tenant's portion is $476 based on the local market rent, the government would cover the difference between the SAFMR and the tenant's payment. In this case, the government would reimburse the landlord the balance up to $900, minus any utility allowances that are factored into the total payment.
Utility allowances can vary but generally, they do not exceed a certain threshold. For ZIP 62047, these allowances are calculated separately and added to the base rent reimbursement. Therefore, the actual amount a landlord receives per month could be slightly higher than $900, depending on the utility allowance provided for the specific household.
Given these figures, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 62047 would be the difference between the SAFMR and the local market rent. Here, the SAFMR is $900, and the local market rent is $476, indicating a potential surplus for landlords who participate in the program.
This surplus means that landlords can receive more than the local market rent, making participation in the Section 8 program financially beneficial. However, it's important to note that the actual amount received will depend on the specific utility allowances and the exact percentage of income paid by the tenant.
Landlords should also consider the administrative aspects of the program, such as maintaining the property to meet Housing Quality Standards and working with the local housing authority to manage payments and tenancy.
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.