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 | $900 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $930 | $84,856 | 1.1% | B |
| 2BR | $1,140 | $114,314 | 1% | C |
| 3BR | $1,460 | $137,242 | 1.06% | B |
| 4BR | $1,690 | $160,277 | 1.05% | B |
| 5BR | $1,960 | $196,352 | 1% | C |
U.S. Census Bureau data (2024)
In ZIP 62095, which encompasses Wood River, IL, and is part of Madison County, the Section 8 housing program operates under specific economic guidelines that directly impact landlords and small-portfolio investors. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1050. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards rent for units in this specific ZIP code. The local market rent, as indicated by ZORI (Zillow Rent Index), stands at $1055, showing a minimal difference between the SAFMR and the actual rental market rates.
The SAFMR rate of $1050 is not the full story when it comes to understanding what a landlord can expect from a voucher payment. To determine the total compensation, you must factor in the tenant's portion of the rent and any utility allowances. Typically, tenants are required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1750 for a tenant in this area, the tenant would contribute approximately $525 towards rent. This leaves the remaining $525 to be covered by the voucher.
Utility allowances are also part of the equation. These allowances vary but generally cover a significant portion of the tenant's energy costs. In ZIP 62095, the utility allowance for a two-bedroom unit might be around $200 per month, depending on the specifics of the local housing authority's policies. Thus, the total monthly reimbursement a landlord could receive from a Section 8 voucher would be the sum of the SAFMR ($1050) and the utility allowance ($200), totaling $1250.
However, since the local market rent is $1055, the SAFMR alone covers nearly all of the market rent. Adding the utility allowance, the total reimbursement exceeds the market rent by $195. This means there is a surplus for landlords who participate in the Section 8 program in this ZIP code, as they receive more than the standard market rate for a two-bedroom unit.
To summarize, for a two-bedroom apartment in ZIP 62095, the SAFMR is $1050, and the local market rent is $1055. With the addition of the utility allowance and the tenant's contribution, landlords can expect a total reimbursement of $1250, resulting in a surplus of $195 above the market rent. This economic structure benefits landlords by providing a higher guaranteed income than the prevailing market conditions.
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.