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 | $910 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $182,042 | 0.52% | F |
| 2BR | $1,150 | $234,008 | 0.49% | F |
| 3BR | $1,480 | $335,592 | 0.44% | F |
| 4BR | $1,700 | $395,818 | 0.43% | F |
| 5BR | $1,972 | $471,038 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 62298, Waterloo, Illinois, in fiscal year 2024 is set at $1100. This figure represents the payment standard for Section 8 housing vouchers, meaning the government will pay up to $1100 per month toward rent for eligible tenants in this area. However, it's important to note that this does not dictate the actual rent you can charge your tenants; it merely sets a limit on the amount the voucher program will cover.
In comparison, the average rent for the same area is listed at $890 according to the latest Census American Community Survey (ACS) data. This indicates that the FMR is higher than the typical market rate, which could be beneficial for landlords participating in the Section 8 program as they receive a subsidy that exceeds the usual rent levels.
With a 14.7% share of renters in the area, there is a moderate demand for rental properties. This percentage suggests that nearly one out of every seven residents in Waterloo are looking for places to rent, which can provide a steady pool of potential tenants for your property.
The median home value in ZIP 62298 is approximately $329,528. This figure reflects the typical price you might expect to pay when acquiring a property in this area. Given the FMR and the local rent average, it’s possible to achieve a reasonable return on investment through the Section 8 program, even with the acquisition costs.
Before proceeding with your first Section 8 rental, it is crucial to verify the physical condition of the property. The Housing Quality Standards (HQS) must be met to ensure that the unit is safe, decent, and sanitary for tenants. Failure to comply with these standards can result in reduced payments or even termination from the program. Ensure that all aspects of the property, including structural integrity, heating, plumbing, and electrical systems, meet the necessary criteria.
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.