Section 8 Fair Market Rent (FMR) for ZIP 62255 - 2027

Location: Washington County, IL | Metro: St. Louis, MO-IL HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$840
1 Bedroom	$870
2 Bedrooms	$1,060
3 Bedrooms	$1,360
4 Bedrooms	$1,570
5 Bedrooms	$1,821
6 Bedrooms	$2,040
7 Bedrooms	$2,203
8 Bedrooms	$2,313

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,092

Median Household Income

$80,506

Housing Units

526

Renter Percentage

13.1%

Occupancy Rate

87.3%

Renter Occupied

If a landlord is considering investing in ZIP code 62255 for Section 8 properties, they should follow this decision tree:

Step 1: Determine if the Fair Market Rent (FMR) of $1050 for the fiscal year 2024 can cover the debt service on a property valued at $130,101.

If the answer is yes, proceed to step 2. The FMR of $1050 must be sufficient to meet the monthly mortgage payments and other costs associated with owning the property. For a property valued at $130,101, assuming a typical mortgage rate and down payment, the FMR of $1050 is likely to cover these expenses. However, precise calculations would depend on the exact mortgage terms and any additional costs such as property taxes and insurance.

If the answer is no, then purchasing a property in ZIP 62255 for Section 8 purposes is not advisable. The FMR does not sufficiently cover the debt service, leading to financial losses over time.

Step 2: Compare the market rent of $669 per month with the FMR of $1050.

If market rent is below the FMR, which it is at $669, then the potential exists to earn a higher rental income by participating in the Section 8 program. This makes the investment more attractive compared to renting at market rates.
If market rent were equal to or above the FMR, the decision would depend on other factors, such as the demand for Section 8 housing and the landlord's willingness to accept the administrative burden of the program.

Step 3: Evaluate the demand for rental properties in ZIP 62255.

The percentage of renters is 13.1%, and the days on market (DOM) for rental listings is not available. Given the limited data on DOM, we must rely on the percentage of renters to gauge demand. A 13.1% rental rate suggests moderate demand, but it is not high enough to guarantee an influx of Section 8 tenants. Therefore, the decision to invest hinges on whether the landlord can effectively market their property to Section 8 participants.

Conclusion:

If the landlord's goal is to ensure that the FMR covers debt service and they are willing to participate in the Section 8 program to potentially earn higher rents than the market rate, then ZIP 62255 could be a viable investment. However, the relatively low percentage of renters means that the landlord will need to actively seek out Section 8 tenants to fill their units. If the landlord cannot manage this aspect or if there are concerns about the ability to cover debt service, then the investment in ZIP 62255 is not recommended.

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.