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 | $1,290 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $212,761 | 0.77% | D |
| 3BR | $2,100 | $279,194 | 0.75% | D |
| 4BR | $2,430 | $360,991 | 0.67% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 63012 (Barnhart, MO, Jefferson County, St. Louis, MO-IL HUD Metro FMR Area) reveals that the HUD Fair Market Rent (FMR) for the area is set at $1240 for fiscal year 2024. This figure represents the maximum amount landlords can charge for their units under the Section 8 program. In comparison, the market rent based on Census ACS data is $1441, indicating that landlords participating in Section 8 will experience marginal cash flow at best, given the discrepancy between the HUD FMR and actual market rates.
To further analyze the investment potential, consider the median home value in the area, which stands at $282,939. Using this figure, we can derive the rent-to-price ratio, which is a critical metric for evaluating rental property investments. The rent-to-price ratio is calculated as follows:
$1441 annual rent / $282,939 median home value = 0.51 (or 51%)
This means that the annual rent represents approximately 5.1% of the median home value. While this ratio does not directly impact the Section 8 investor's cash flow, it suggests that the area has a relatively balanced relationship between rental income and property values, which can be beneficial for long-term investment strategies.
Given the N/A-day median Days on Market (DOM) and N/A% price-cut share, it is important to note that these metrics indicate a stable market with little to no need for price adjustments due to prolonged vacancy periods. This stability is particularly advantageous for Section 8 investors, as it minimizes the risk of non-payment and ensures a steady stream of rental income.
In conclusion, while voucher tenants in ZIP 63012 will likely only achieve positive cash flow with premium units or through cost-saving measures, the overall stability and balanced rent-to-price ratio make this area a strong choice for investors seeking consistent returns and minimal risk. Stability is the strongest investor angle in this 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.