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 | $1,220 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $175,542 | 0.88% | C |
| 3BR | $1,990 | $274,234 | 0.73% | D |
| 4BR | $2,300 | $343,105 | 0.67% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 62258 (Mascoutah, IL) is currently characterized by a median home value of $258,215, indicating a stable housing market that has not seen significant price fluctuations recently. The fact that only 0.3% of listings have reduced their asking prices suggests strong seller pricing power. This low reduction rate implies that homes are generally selling at or near their listed values, a positive sign for current and potential sellers. However, the median days on market (DOM) being not available could indicate either a very active market where homes sell quickly or a less active market where sales occur without prolonged exposure. Given the context of stable median home values and minimal price reductions, it's reasonable to infer that the market is likely to be brisk.
On the rental side, the Federal Market Rent (FMR) for ZIP 62258 in fiscal year 2024 is set at $1,240, while the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,416. This disparity signals a favorable environment for landlords, as they can potentially command higher rents than the government benchmark. For small-portfolio investors considering long-term holds, the setup suggests a steady income stream from rental properties, especially if they are priced competitively yet above the FMR.
Long-term investors should also consider the realistic appreciation thesis. With the median home value remaining relatively stable and the slight increase in market rents compared to FMR, there is an implied potential for modest appreciation in property values. However, this does not guarantee rapid capital growth. Instead, it supports a strategy focused on cash flow generation through rentals, with the expectation of gradual value appreciation over time.
Overall, the data points towards a market where pricing power remains with the sellers, and rental income can exceed government benchmarks, providing a solid foundation for long-term investment strategies. Landlords and small-portfolio investors should focus on maintaining competitive rental rates and being prepared for a market that will likely continue to favor stability and slow growth over dramatic shifts.
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.