Section 8 Fair Market Rent (FMR) for ZIP 63017 - 2027

Investment Score for ZIP 63017

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,520
1 Bedroom	$1,580
2 Bedrooms	$1,930
3 Bedrooms	$2,480
4 Bedrooms	$2,860
5 Bedrooms	$3,318
6 Bedrooms	$3,716
7 Bedrooms	$4,013
8 Bedrooms	$4,214

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,580	$428,409	0.37%	F
2BR	$1,930	$293,668	0.66%	D
3BR	$2,480	$493,715	0.5%	F
4BR	$2,860	$597,032	0.48%	F
5BR	$3,318	$723,721	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63017 (Chesterfield, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63017 in 2026 is set at $1710 for a two-bedroom unit. This amount represents 16.1% of the median household income in the area, which stands at $127,095. The FMR is designed to ensure that voucher holders can afford housing without spending more than 30% of their income on rent. However, the actual rents in Chesterfield are significantly higher, with the Zillow median price for a two-bedroom home being $294,548. The price-to-FMR ratio of 14.4x indicates that the actual market rents are much higher than the FMR, making it challenging for voucher holders to find affordable housing. For instance, a typical two-bedroom apartment might cost around $1710 per month, but if the actual rental rates exceed this amount, voucher holders would face difficulties in securing a place within their budget. #### Affordability & Renter Profile Chesterfield has a population of 43,243, with 24.1% of residents being renters. Given the high median household income, the area attracts a diverse mix of renters, including young professionals, families, and retirees. The occupancy rate of 96.1% suggests that the rental market is tight, indicating strong demand and limited supply. This tight market means that landlords have significant leverage over rental pricing, often setting rates above the FMR to maximize profits. Consequently, the rental market is highly competitive, and affordability is a significant concern for many residents, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 63017 presents a mixed picture when considering cash flow and investment grade. The FMR for a two-bedroom unit is $1710, which is the maximum rent that a landlord can charge to be eligible under the Section 8 program. However, the actual market rents are substantially higher, with the Zillow median price for a two-bedroom home being $294,548. This implies that the price-to-FMR ratio of 14.4x is indicative of a market where properties are priced well above the FMR. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and renting out a property. Assuming a mortgage payment of approximately $1,000 per month, property taxes of $300, insurance of $100, and maintenance costs of $100, the total monthly expenses would be around $1,500. At the FMR of $1710, the net cash flow would be $210 per month, which is positive but relatively low given the high costs associated with maintaining a property in such a desirable location. The investment grade for this ZIP code is moderate due to the tight rental market and the potential for higher rental income if the property is rented outside of the Section 8 program. However, the strict adherence to FMR under the Section 8 program limits the profitability for investors who are solely focused on this type of tenant. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should seek out properties that are priced below the FMR to ensure they can be rented out to Section 8 voucher holders. For example, a two-bedroom unit priced at $1600 per month would provide a better margin for profit while still being within the FMR guidelines. 2. **Consider Diversifying Tenant Base**: Given the high median household income and the tight rental market, landlords could consider diversifying their tenant base beyond just Section 8 voucher holders. This could include market-rate tenants willing to pay more than the FMR, thereby increasing overall profitability. 3. **Evaluate Property Management Costs**: Due to the high costs of property ownership in Chesterfield, it is crucial to evaluate and manage property management costs effectively. This includes negotiating lower mortgage rates, reducing property taxes through exemptions, and minimizing maintenance costs by investing in quality construction and materials. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the recommendation for ZIP code 63017 is to **Hold**. While the market is tight and there is strong demand for rentals, the low cash flow at FMR makes it less attractive for new investments. Existing investors with properties already below the FMR may continue to benefit from steady occupancy rates, but those looking to enter the market should carefully consider the financial implications and possibly explore other areas with higher cash flow potential.

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.