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 | $990 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $315,443 | 0.51% | F |
| 4BR | $1,850 | $374,665 | 0.49% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 62216 under the Section 8 program are significant. Tenant turnover is a major concern, as the market rent stands at $963, which is notably lower than the Fair Market Rent (FMR) of $1150 for fiscal year 2024. This discrepancy suggests that tenants may be more inclined to move when they find better rental deals, leading to frequent changes in occupancy and associated costs.
Vacancy exposure is another issue. The Days on Market (DOM) for properties in this area is not available, indicating a lack of recent data on how long it takes to fill vacancies. However, given the lower market rent compared to FMR, landlords might face longer periods of vacancy, especially if they rely solely on Section 8 vouchers.
Deferred maintenance is also a risk factor. With a typical home value of $301,708 and a median income of $120,139, homeowners in ZIP 62216 may struggle to keep up with necessary repairs and maintenance due to financial constraints. This can lead to higher maintenance costs for landlords, as they may need to invest more in property upkeep to meet the standards required by the Section 8 program.
Despite these challenges, there are mitigating factors that reduce some of the risk. The renter share in ZIP 62216 is 16.1%, which is relatively high. High renter density often translates into a greater demand for housing vouchers, making it easier to find qualified tenants who can pay consistently through the Section 8 program.
In summary, while there are notable risks such as tenant turnover, vacancy exposure, and deferred maintenance, the high renter share provides a buffer against these issues. Therefore, the overall risk for a first-time Section 8 landlord in ZIP 6216 is moderate.
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.