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 | $1,250 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $303,193 | 0.67% | D |
| 4BR | $2,350 | $397,188 | 0.59% | F |
| 5BR | $2,726 | $475,209 | 0.57% | F |
U.S. Census Bureau data (2024)
In ZIP code 62281, there are several risks that first-time Section 8 landlords should be aware of. Tenant turnover is a significant concern, with the market rent at $1,191 being notably lower than the Fair Market Rent (FMR) of $1,540 for FY 2024. This discrepancy can lead to higher turnover rates as tenants seek more affordable housing options, which directly impacts the stability and income consistency of rental properties.
Vacancy exposure is another critical issue. The Days on Market (DOM) data is currently unavailable, which makes it difficult to predict how long properties might remain vacant between tenancies. A prolonged period of vacancy can significantly affect cash flow, especially when combined with the lower market rent compared to the FMR.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $354,912 and a median income of $132,000, homeowners may struggle to keep up with maintenance costs, particularly if their income is primarily derived from rental properties. This financial strain can result in substandard living conditions, which could attract regulatory scrutiny and negatively impact property values.
However, these risks must be weighed against the high concentration of renters in the area. The 9.0% renter share indicates a dense population of potential voucher holders, suggesting a robust demand for Section 8 rentals. High renter density typically correlates with higher voucher utilization, providing a steady stream of qualified tenants who can afford to pay their portion of the rent through the program.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 62281 creates a favorable environment for Section 8 investments. The demand for affordable housing is strong, and landlords can expect a reliable tenant pool. Therefore, the overall risk for a first-time Section 8 landlord in this ZIP code is moderate.
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.