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 | $820 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $302,272 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 62218 presents an interesting scenario for both renters and landlords. With a median household income of $91,250, the financial landscape for residents is relatively stable. However, when considering the market rate rent of $663, as reported by the Census Bureau's American Community Survey (ACS), it becomes evident that this figure is quite low compared to the typical income levels. This suggests that many households in this area could comfortably afford the market rate without significant strain on their budgets.
The comparison between the market rate and the Fair Market Rent (FMR) payment standard of $1050 for ZIP 62218 in fiscal year 2024 highlights a substantial discrepancy. The FMR, which is used to determine the amount of housing assistance paid through vouchers, is significantly higher than the actual market rate. This means that tenants with vouchers could potentially find themselves in a position where they have more rental budget than the local market demands, leading to a situation where landlords might receive more per unit than the average market rate.
Given the ZIP code's demographic makeup, with only 7.7% of the 2,018 population being renters, the competition among landlords for rental properties is likely to be fierce. Landlords must consider the limited pool of potential tenants and the fact that those with vouchers can offer a higher rent payment than the market rate suggests. This creates a unique opportunity for landlords who are willing to accept vouchers, as they can command rents closer to the FMR standard without the typical market constraints.
The takeaway for landlords is clear: accepting vouchers can be a lucrative strategy given the high FMR standards relative to the actual market rates. While some landlords might prefer cash-paying tenants due to the simplicity of transactions, the reality is that voucher tenants can provide a more consistent and higher revenue stream. For small-portfolio investors, this could mean the difference between maintaining a competitive edge and struggling to fill units at market rates.
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.