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 | $1,510 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $251,821 | 0.76% | D |
| 3BR | $2,450 | $383,115 | 0.64% | D |
| 4BR | $2,830 | $492,200 | 0.57% | F |
| 5BR | $3,283 | $544,034 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 63011, located in Ballwin, Missouri, presents an interesting scenario when analyzing housing affordability from a renter's perspective. The median household income in this area stands at $124,454, which is quite substantial. However, when considering the market rate for rent, which is set at $1,763 per month (ZORI), the situation becomes more nuanced.
Comparatively, the Fair Market Rent (FMR) for ZIP 63011 as of fiscal year 2024 is $1,800. This means that the market rate for rent is slightly below the FMR, indicating that the rental prices are somewhat affordable relative to what is considered fair market value. Yet, the median income figure suggests that a significant portion of the population could easily cover the monthly rent without financial strain.
With only 17.9% of the population being renters and a total population of 35,920, it's evident that there is a smaller pool of potential tenants compared to areas with higher percentages of renters. This lower demand for rentals can translate into increased competition among landlords to attract and retain tenants. Landlords must consider not only the rental rates but also the amenities and quality of their properties to stand out in this competitive environment.
The affordability gap, where the median income far exceeds the market rate for rent, can be both a blessing and a curse for landlords. On one hand, it means that many households can comfortably afford the market rate, reducing the risk of default on rent payments. On the other hand, the gap might lead to a preference for homeownership over renting, further shrinking the tenant pool and increasing competition.
For landlords weighing the benefits of voucher programs versus relying on cash-paying tenants, the data points to a strategic decision. Given the high median income and relatively low market rent, landlords might find that cash-paying tenants provide a more stable and predictable revenue stream. However, participating in voucher programs can still be beneficial, as it opens up the property to a wider range of tenants who might otherwise struggle to find suitable housing. The key takeaway is that while cash-paying tenants are likely more abundant, voucher programs can offer a valuable alternative to diversify the tenant base and ensure steady occupancy in a competitive market.
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.