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 | $990 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $39,978 | 2.55% | A+ |
| 2BR | $1,250 | $48,200 | 2.59% | A+ |
| 3BR | $1,600 | $70,705 | 2.26% | A+ |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 62060 in Madison, Illinois, reveals several key points that are essential for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for this area in fiscal year 2024 is $1000. In contrast, the Census American Community Survey (ACS) indicates that the market rent for the same area is $1,063.
This comparison suggests that voucher tenants will cashflow marginally at the HUD FMR rate. Landlords who accept Section 8 vouchers can expect to cover their expenses but might face slight challenges in generating significant profit margins. To ensure positive cash flow, it is advisable to focus on premium units that offer higher quality and amenities, allowing for rents closer to the market rate while still benefiting from the voucher program.
The median home value in ZIP 62060 is $51,281. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $1,063, the ratio comes out to approximately 25:1. This means that for every dollar of rent collected, the property value is about $25. This metric is useful for understanding the relative affordability of housing in the area and can influence decisions regarding the type of properties to invest in.
Note that the median Days on Market (DOM) and the percentage of price cuts are not applicable (N/A) in this context. However, these metrics would be relevant if assessing the buy-versus-rent dynamics. Given the current data, the strongest angle for investors in this market is stability. The consistent demand for rental properties, combined with the availability of Section 8 vouchers, provides a reliable source of income without the need for frequent rent adjustments or property turnovers.
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.