Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
The Section 8 analysis for ZIP code 62252 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 62252 is set at $1080. However, the market rent data is currently unavailable, which makes it challenging to provide a precise comparison. Despite this, the implications of the FMR can still be analyzed within the context of Unknown, MO.
In Unknown, MO, the percentage of renters is unknown, as is the median home value and median income. These missing metrics would typically help in understanding the local rental market dynamics and the financial capacity of residents. Nevertheless, the $1080 FMR serves as a benchmark for landlords who might consider participating in the Section 8 program.
If the FMR exceeds the market rent, landlords can attract voucher tenants, making this area a yield play. The higher FMR compared to what the market offers means that landlords could potentially receive a higher rent payment through the Section 8 program than they would from market-rate tenants. This scenario benefits landlords by ensuring a steady income stream, often above the current market rate, thus improving their investment yields.
Conversely, if the FMR is lower than the market rent, landlords must accept the cost of renting to voucher tenants at rates below the open-market level. This situation requires careful consideration of the costs associated with maintaining properties to meet HUD standards and the administrative burden of managing Section 8 tenants. The lower FMR could reduce profit margins, but it also provides an opportunity to serve a community that might otherwise struggle to find adequate housing.
The decision to participate in the Section 8 program should be made with an awareness of the local economic conditions. Even without specific figures for the percentage of renters, median home values, and median incomes, landlords and small-portfolio investors should weigh the benefits of stable, government-backed income against the potential drawbacks of reduced rental rates and increased compliance requirements.
Data Sources: FMR data from HUD (2027).
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.