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 | $1,000 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $51,910 | 2.45% | A+ |
| 3BR | $1,630 | $63,459 | 2.57% | A+ |
| 4BR | $1,880 | $79,700 | 2.36% | A+ |
U.S. Census Bureau data (2024)
The ZIP code 62206, located in Cahokia, Illinois, presents an interesting scenario for both renters and landlords. The median income here stands at $33,838, which is notably lower than the market rate rent of $1,390 per month (ZORI). This makes it challenging for the average household to afford market-rate housing without financial strain.
To put this into perspective, the Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,190. This is the standard used for determining Housing Choice Voucher payments, making it a critical figure for understanding affordability. A household earning the median income would spend approximately 41% of their annual income on market-rate rent, whereas the voucher payment would amount to roughly 35% of their income. While both figures exceed the recommended guideline of 30%, the voucher payment is significantly more affordable.
The ZIP code has a rental population of 12,959, with 44.5% of residents being renters. This high percentage of renters indicates a robust demand for affordable housing options. For landlords, this means that there is strong competition among those who can offer more affordable rent, particularly those participating in the voucher program.
The affordability gap in 62206 highlights the necessity for landlords to consider the benefits of accepting vouchers. Although voucher payments might be slightly lower than market rates, they provide a steady and reliable income stream. Moreover, vouchers can help secure tenants who are less likely to default on rent due to financial instability.
Takeaway: Landlords in ZIP 62206 should seriously consider participating in the voucher program to remain competitive in the local market. Accepting vouchers can attract stable tenants and ensure a consistent income, even if it means accepting a slightly lower rent than the market rate. This strategy aligns with the economic realities faced by many households in the area, providing a practical solution for both parties.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.