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 ZIP code 62053 is situated in a predominantly owner-occupied neighborhood with a total population of 351 residents. Only 22.0% of these residents are renters, indicating a relatively low demand for rental properties. The median household income in this area is $61,250, which suggests a middle-class community where most residents can afford their own homes. The median home value stands at $152,103, reflecting an affordable housing market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 62053 in fiscal year 2024 is set at $900. This is notably higher than the average market rent, which according to the Census ACS, is $594. This discrepancy highlights a potential opportunity for landlords and investors who can leverage the higher FMR to attract tenants eligible for Section 8 vouchers.
Given the characteristics of ZIP 62053, it would be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to the market rent provides a stable and predictable revenue stream, as long as they can secure Section 8 tenants. On the other hand, value-add buyers could potentially renovate properties to command rents closer to the FMR, thereby increasing profitability and attracting a broader range of tenants.
However, the low percentage of renters in the area means that competition for Section 8 vouchers might be intense. Landlords should ensure their properties meet the necessary standards to qualify for the program. Additionally, the limited number of renters implies that there may be fewer opportunities overall, necessitating careful consideration of the investment's long-term viability.
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.