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 | $940 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $192,009 | 0.62% | D |
| 3BR | $1,530 | $281,325 | 0.54% | F |
| 4BR | $1,760 | $344,233 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 63016, located in Cedar Hill, Missouri, reveals key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for this area in fiscal year 2024 is $1,150. In comparison, the Census American Community Survey (ACS) reports the average market rent at $1,208. This indicates that voucher tenants will generally cashflow marginally, requiring landlords to ensure their properties are well-managed to cover operating costs and maintain profitability.
To further understand the investment potential, consider the median home value in ZIP 63016, which stands at $274,373. Using this figure, we can derive the rent-to-price ratio, a critical metric for assessing the attractiveness of rental properties. With an average market rent of $1,208, the annual rent would be approximately $14,496, leading to a rent-to-price ratio of roughly 5.28%. This ratio suggests that the rental income is relatively low compared to the property values, indicating that appreciation might be a stronger driver of returns than rental income alone.
The dynamics between renting and buying in ZIP 63016 also deserve attention. While specific data on days on market (DOM) and the percentage of price cuts are not available, these metrics are typically indicative of how quickly homes sell and the level of competition in the housing market. Given the median home value and the slight disparity between the FMR and market rent, it's reasonable to infer that investors should focus on maintaining or improving cashflow through efficient management practices and strategic pricing.
In conclusion, for investors in ZIP 63016, the strongest angle is likely to be property appreciation rather than pure cashflow, given the modest rent-to-price ratio and the marginal cashflow potential from voucher tenants. Stability in occupancy and rent collection remains crucial for sustained success in this market segment.
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.