Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 62219 in relation to Section 8 housing reveals several potential challenges. Firstly, tenant turnover could be a significant issue, with the market rent set at $961 compared to the Fair Market Rent (FMR) of $1100 for fiscal year 2024. This disparity indicates that landlords might struggle to retain tenants who are accustomed to the higher rental standards, leading to frequent vacancies and associated costs.
Vacancy exposure is another concern. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long properties might remain unoccupied. In a market where competition is fierce, a longer DOM can lead to increased expenses and lost rental income.
Deferred maintenance poses a risk as well. With a typical home value of $140,153 and a median income of $63,603, homeowners may delay necessary repairs due to financial constraints. This can affect the overall condition of the property, requiring landlords to invest more in upkeep to meet Section 8 standards and maintain occupancy.
However, these risks are balanced by the high renter share in the area, which stands at 27.1%. A larger proportion of renters typically translates into higher demand for rental properties, including those accepting Section 8 vouchers. This demand can help mitigate the risks associated with turnover and vacancy, ensuring a steady stream of potential tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.