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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $188,336 | 0.63% | D |
| 3BR | $1,530 | $245,034 | 0.62% | D |
| 4BR | $1,760 | $272,827 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 63019, Crystal City, Missouri, provides valuable insights into the investment potential of properties in this area. The Fair Market Rent (FMR) for a two-bedroom apartment in FY 2024 is set at $1,160 annually. Given the median home value of $225,469, this translates to an implied gross yield of approximately 5.1%. This calculation is derived by dividing the annualized rental income ($1,160 * 12 = $13,920) by the median home value ($225,469).
In contrast, the market rent for a two-bedroom property based on the Census ACS data stands at $1,054 per month, equating to an annual rental income of $12,648. When this figure is applied to the same median home value, it results in an implied gross yield of roughly 5.6%. These yields are indicative of the direct income generated from rental payments without accounting for expenses, which would be necessary to determine the Net Operating Income (NOI).
Given the 23.6% renter density in Crystal City, it is evident that a significant portion of the population relies on rental housing, including those who might qualify for Section 8 assistance. However, the N/A-day Days on Market (DOM) suggests that there is insufficient data to determine how quickly properties are rented out, which could impact the reliability of the gross-yield figures.
The higher gross yield from market rents implies that properties in Crystal 63019 can generate slightly more income when rented at market rates compared to Section 8 rates. Nonetheless, the Section 8 program offers stability and reduced vacancy risk, which can be particularly attractive for landlords and small-portfolio investors. While the 5.1% gross yield from Section 8 is lower than the 5.6% from market rents, the guaranteed income and administrative support provided by the program make it a reliable option for those looking to minimize financial uncertainty.
Investors should consider these gross-yields as starting points for their own detailed analyses, factoring in local market conditions, property management costs, and the specific terms of the Section 8 contracts. The decision between renting at market rates or participating in the Section 8 program should ultimately depend on the investor's risk tolerance and long-term goals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.