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 | $940 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $160,365 | 0.75% | D |
| 3BR | $1,510 | $294,853 | 0.51% | F |
| 4BR | $1,790 | $357,559 | 0.5% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 62097 (Worden, IL) for Section 8 investment, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1070 cover the debt service on a $306,266 property?
No. The FMR of $1070 is unlikely to cover the debt service on a property valued at $306,266. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, the monthly debt service would likely exceed the FMR.
It depends. If you have a low-cost financing option or if the property has minimal ongoing expenses, the FMR might be sufficient. However, based on typical costs, it is unlikely.
Yes. This scenario is improbable given standard debt service calculations for properties of this value.
Step 2: Is the market rent of $2,090 above, at, or below the FMR?
Above. The market rent of $2,090 is significantly higher than the FMR of $1070. This indicates that the area may be more suitable for market-rate rentals rather than Section 8 tenants.
At. Not applicable in this case as the market rent is clearly above the FMR.
Below. Not applicable in this case as the market rent is clearly above the FMR.
Step 3: Are 12.3% renters combined with an unspecified number of days in Days on Market (DOM) indicative of enough demand?
Yes. With 12.3% of residents renting, there is a consistent demand for rental properties. However, the lack of data on DOM makes it difficult to assess how quickly properties are being rented out.
It depends. While the percentage of renters suggests demand, the absence of DOM data means you cannot fully evaluate the speed of tenant acquisition. Additional research into the local rental market dynamics is recommended.
No. Not applicable unless DOM data indicates slow tenant acquisition rates.
In conclusion, ZIP 62097 (Worden, IL) presents challenges for Section 8 investments due to the FMR not covering typical debt service on a $306,266 property. Additionally, the market rent being substantially higher than the FMR suggests a better fit for market-rate rentals. The presence of 12.3% renters indicates demand, but without DOM data, it's uncertain how quickly you can fill your units with Section 8 tenants.
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.