Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,590 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP 62225 are significant and must be carefully considered. First, tenant turnover could pose a challenge. The market rent for the area is $1,665, which is below the Fair Market Rent (FMR) of $1,810 for FY 2024. This discrepancy suggests that tenants might be inclined to leave once they find a higher-paying job or move to a more affordable rental unit outside the program. High turnover can lead to increased costs associated with finding new tenants, including advertising, screening, and preparation of the property.
Vacancy exposure is another concern. With a Day on Market (DOM) status of N/A, it's unclear how quickly properties are rented out. However, given the high renter share of 97.3%, vacancies should be short-lived once the property is listed. This high percentage of renters typically translates into a robust demand for housing vouchers, which can mitigate the risk of prolonged vacancies.
The deferred-maintenance exposure is also noteworthy. While the typical home value is not available, the median income in the area is $103,284. This figure indicates that residents have the financial capacity to afford higher rents, but it does not directly correlate with their ability to cover maintenance costs. Tenants under the Section 8 program may not have the resources to address minor repairs, leaving landlords responsible for maintaining the property to meet program standards. Failure to do so can result in penalties and loss of voucher eligibility.
Despite these risks, the high renter share in ZIP 62225 provides a strong foundation for a successful Section 8 investment. The majority of residents are already accustomed to renting, and the demand for affordable housing is likely to be steady. This makes the area attractive for landlords who can manage the challenges posed by tenant turnover and maintenance requirements.
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.