Location: Montgomery County, IL | 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 | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $219,443 | 0.56% | F |
| 4BR | $1,430 | $235,473 | 0.61% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 62074 reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for the area is set at $900 for the fiscal year 2024. In comparison, the Census American Community Survey (ACS) indicates that the average market rent is $800. This suggests that voucher tenants will generally cashflow positively at the FMR rate, providing landlords with a buffer against market fluctuations.
To further understand the investment potential, consider the median home value in the area, which stands at $220,428. Using this figure, we can calculate a rent-to-price ratio of approximately 0.41%, indicating that rental income is relatively low compared to property values. However, this does not necessarily detract from the attractiveness of the market for investors, as it points to strong stability in housing prices, reducing the risk of significant depreciation.
The data on days on market (DOM) and price-cut share is not available, but given the positive cashflow dynamics, these factors are less critical. The key takeaway for investors is that the current HUD FMR exceeds the market rent, allowing for consistent cashflow even in standard units without the need for premium upgrades. This makes ZIP 62074 particularly appealing for investors seeking stable cashflow opportunities.
The strongest investor angle in this market is cashflow. Given the discrepancy between the HUD FMR and the actual market rent, landlords can expect steady positive cashflow from Section 8 tenants without the risks associated with volatile markets or high vacancy rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.