Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 62059 for Section 8 landlords and small-portfolio investors include tenant turnover, vacancy exposure, and deferred maintenance issues. At a market rent of $904, slightly above the Fair Market Rent (FMR) of $900 for FY 2024, there is a risk that tenants might seek cheaper accommodations outside the program, leading to higher turnover rates. This can be costly due to the time and expense involved in finding new tenants and ensuring compliance with Section 8 requirements.
Vacancy exposure is another concern. With the days on market (DOM) being listed as N/A, it's difficult to gauge how quickly properties can be filled. This uncertainty can result in periods of non-rent collection, which is particularly risky given the median income of $30,673. Landlords must be prepared for possible delays in receiving rental payments, especially if tenants face financial hardships.
Deferred maintenance exposure also poses a challenge. The typical home value is listed as N/A, indicating limited data on property values in the area. However, the median income suggests that residents may have less disposable cash to cover unexpected repairs and maintenance costs. This could lead to landlords having to shoulder these expenses themselves, impacting their overall profitability.
Despite these risks, the high renter share of 55.4% in ZIP 62059 indicates a robust demand for rental housing, including Section 8 vouchers. A dense rental market often correlates with higher demand for subsidized housing, which can stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.