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 | $1,240 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $175,360 | 0.9% | C |
| 3BR | $2,010 | $275,926 | 0.73% | D |
| 4BR | $2,320 | $393,844 | 0.59% | F |
| 5BR | $2,691 | $496,772 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 62269, located in O Fallon, IL, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $103,818, which provides a solid financial foundation for many residents. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,710. This figure represents the average rental price in the area and is a critical benchmark for understanding the local housing market.
In comparison, the Fair Market Rent (FMR) set for the ZIP code for fiscal year 2024 is $1,410. This FMR is the standard used to determine the amount of Housing Choice Voucher (Section 8) payments to landlords. It is designed to reflect the typical rents charged for decent, safe, and sanitary housing in the area. The difference between the ZORI ($1,710) and the FMR ($1,410) highlights a significant affordability gap for those relying on Section 8 vouchers.
The ZIP code has a population of 35,923, with 28.7% of households being renters. Given the income levels and rental rates, the competition among landlords can be fierce. Those who accept Section 8 vouchers might find themselves catering to a larger portion of the renting population, but they will also face the challenge of receiving lower rent payments compared to market rates. For landlords considering whether to accept voucher tenants or focus on cash-paying tenants, the decision should hinge on the balance between the number of potential tenants and the rental income needed to maintain profitability.
The takeaway for landlords is clear: accepting Section 8 vouchers can open up a significant segment of the market, given the affordability gap faced by many renters. However, it comes at the cost of reduced rental income compared to market rates. Landlords must weigh the benefits of increased occupancy against the lower per-unit revenue when deciding their rental strategy. For those willing to participate in the voucher program, it offers a steady stream of tenants, albeit at a lower rate than the market would command.
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.