Section 8 Fair Market Rent (FMR) for ZIP 62087 - 2027

Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$800
1 Bedroom	$830
2 Bedrooms	$1,010
3 Bedrooms	$1,300
4 Bedrooms	$1,500
5 Bedrooms	$1,740
6 Bedrooms	$1,949
7 Bedrooms	$2,105
8 Bedrooms	$2,210

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,181

Median Household Income

$60,214

Housing Units

924

Renter Percentage

32.5%

Occupancy Rate

92.0%

Renter Occupied

276

Housing Authorities Serving ZIP 62087

Madison County Housing Authority (Collinsville, IL) - 1,223 Section 8 vouchers
Granite City Housing Authority (Granite City, IL)
Housing Authority - City of Alton (Alton, IL)

The ZIP code 62087 is located in a suburban area of Illinois, characterized by a relatively small population of 2,181 residents. Approximately 32.5% of the residents are renters, indicating a modest demand for rental properties. The median household income in this area stands at $60,214, which suggests a middle-class community. The median home value is notably lower at $96,534, reflecting an affordable housing market.

From an investment perspective, the Fair Market Rent (FMR) for ZIP 62087 in fiscal year 2024 is set at $900, while the Census Bureau's American Community Survey (ACS) reports the average market rent at $856. This means that Section 8 vouchers can cover slightly above the typical market rate, providing a buffer for landlords who might be concerned about rental income stability.

To determine whether ZIP 62087 suits a hands-off voucher operator or a hands-on value-add buyer, several factors must be considered:

Housing Affordability: With a median home value of $96,534, the area offers a low entry barrier for property acquisition. This could be advantageous for both hands-off and hands-on investors.
Rental Demand: Given that only 32.5% of residents are renters, the market may be somewhat limited. However, the presence of Section 8 vouchers ensures a steady stream of tenants for those willing to participate in the program.
Economic Stability: The median income of $60,214 indicates a stable economic environment where residents are likely to meet their financial obligations, including rent.
Voucher Program: The FMR exceeding the market rent by $44 per month makes it feasible for hands-off operators to manage properties without significant risk of vacancy.

For a hands-off voucher operator, ZIP 62087 presents a manageable market with guaranteed tenant income through the Section 8 program. On the other hand, a hands-on value-add buyer might find opportunities to improve and increase rents beyond the FMR, although the relatively low percentage of renters suggests a smaller pool of potential tenants.

In conclusion, ZIP 62087 is better suited for a hands-off operator due to the stable economic conditions and the favorable FMR-to-market-rent ratio, which minimizes the risk of vacancy and ensures consistent cash flow.

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.