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 | $1,030 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $221,583 | 0.59% | F |
| 3BR | $1,680 | $278,849 | 0.6% | D |
| 4BR | $1,940 | $370,754 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 63010, located in Arnold, Missouri, presents an interesting scenario for both renters and landlords when considering the financial landscape. The median income in this area stands at $79,784, which provides insight into the economic status of households. However, the market rate for rent, measured by the Zillow Observed Rent Index (ZORI), is set at $1,651 per month. This figure represents the average rent paid by tenants in the area, offering a direct comparison to the income levels.
In contrast, the Federal Market Rent (FMR) for ZIP 63010 in fiscal year 2024 is $1,220. This is the amount that Housing Choice Vouchers (commonly known as Section 8 vouchers) would cover, providing a significant subsidy to eligible low-income families. The disparity between the ZORI ($1,651) and the FMR ($1,220) highlights a notable affordability gap for those relying on vouchers to secure housing.
Affordability becomes even more critical when considering that 20.9% of the 34,478 residents in Arnold are renters. This demographic makes up a substantial portion of the local housing market, indicating a competitive environment for landlords. The difference between the market rent and the voucher payment means that landlords accepting vouchers must be prepared to accept a lower rental income than what they could potentially receive from cash-paying tenants.
For landlords and small-portfolio investors, the decision to accept voucher tenants versus cash-paying ones hinges on understanding the local market dynamics and their own financial goals. Accepting voucher tenants allows access to a stable, government-backed rental stream but at a lower rate than the market. Cash-paying tenants might offer higher rents, but they also come with their own set of risks and uncertainties.
The takeaway is that while the voucher payment standard is significantly below the market rate, it still represents a viable option for landlords looking to serve a broader segment of the community. Landlords should weigh the benefits of guaranteed payments against the potential for higher cash flows from market-rate tenants. Given the population and rental demographics, there is a clear demand for affordable housing options, making voucher tenants a valuable part of any investment strategy in Arnold, Missouri.
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.