Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
The market analysis for Section 8 investors in ZIP code 62202 reveals that the HUD Fair Market Rent (FMR) for the area stands at $1190 for fiscal year 2024. This figure represents the baseline rental rate for voucher tenants in the region. However, without specific data on the current market rent for the area, it's challenging to provide a direct comparison. Assuming the market rent aligns closely with the HUD FMR, voucher tenants would likely cashflow at the FMR rate, meaning the income received from the voucher would cover the costs of owning and maintaining the property.
The median home value in ZIP 62202 is currently unavailable, which hinders a precise calculation of the rent-to-price ratio. Typically, this ratio helps investors understand how much they can expect to earn from renting out a property compared to its purchase price. A higher ratio indicates better potential returns on investment through rental income. Without this data, we cannot fully assess the long-term profitability of rental properties versus buying them outright.
The days on market (DOM) and the percentage of homes that require price cuts are also unspecified, making it difficult to gauge the urgency of sales and the typical discounts offered. These metrics are crucial for understanding the local housing market's health and the potential challenges landlords might face when trying to sell their properties.
Despite these limitations, the stability of the HUD FMR provides a reliable benchmark for Section 8 landlords. The consistent rental income ensures predictable cash flow, which is essential for small-portfolio investors looking to manage risk. Given the lack of volatile market rent data and the fixed nature of the HUD FMR, stability emerges as the strongest investor angle in this market, offering peace of mind and steady returns.
Data Sources: FMR data from HUD (2027).
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.