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 | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,710 | $271,536 | 0.63% | D |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to invest in ZIP 62215 for Section 8 properties starts with the Fair Market Rent (FMR) and its relation to the debt service coverage ratio (DSCR) of potential properties.
1) Does FMR of $1150 cover debt service on a $254,371 property?
Yes: The FMR of $1150 is sufficient to clear debt service on a $254,371 property. This means that if you can acquire a property for this price or less, the rental income from a Section 8 tenant will be adequate to meet all mortgage obligations.
No: If the property cost exceeds the ability of the FMR to cover debt service, purchasing in ZIP 62215 would not be advisable. For instance, if a property costs significantly more than $254,371, the $1150 monthly rental assistance might not be enough to sustain the mortgage payments.
2) Is the market rent of $987 above, at, or below FMR?
Above FMR: If the market rent is higher than the FMR, then landlords might find it challenging to justify renting out their property at the lower FMR rate. However, this scenario does not apply to ZIP 62215 where the FMR ($1150) is higher than the market rent ($987).
At FMR: This condition is not applicable since the market rent and FMR are different in ZIP 62215.
Below FMR: In ZIP 62215, the market rent of $987 is below the FMR of $1150. This suggests that landlords could potentially earn more from Section 8 tenants than from market-rate tenants, making it a favorable option for those interested in Section 8 properties.
3) Are 18.6% of residents renters and N/A-day days on the market (DOM) enough demand?
It Depends: With 18.6% of residents being renters, there is some demand for rental properties. However, the lack of data on days on the market (DOM) makes it difficult to assess the speed at which rental units are filled. If DOM is low, indicating quick leasing, combined with the FMR covering debt service and being above market rent, the answer leans towards yes. Conversely, if DOM is high, suggesting slow leasing, the decision becomes less clear.
In summary, for ZIP 62215, the FMR sufficiently covers debt service on a $254,371 property and is higher than the market rent, making it advantageous for landlords to consider Section 8 properties. However, the adequacy of demand hinges on the unknown DOM metric. If DOM is low, then the answer is a clear yes. If DOM is high, then the answer is no.
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.