Section 8 Fair Market Rent (FMR) for ZIP 63021 - 2027

Investment Score for ZIP 63021

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	$1,290
1 Bedroom	$1,330
2 Bedrooms	$1,630
3 Bedrooms	$2,090
4 Bedrooms	$2,410
5 Bedrooms	$2,796
6 Bedrooms	$3,132
7 Bedrooms	$3,383
8 Bedrooms	$3,552

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,330	$224,726	0.59%	F
2BR	$1,630	$218,833	0.74%	D
3BR	$2,090	$344,699	0.61%	D
4BR	$2,410	$515,817	0.47%	F
5BR	$2,796	$624,002	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63021 (Ballwin, MO) #### Section 8 Voucher Dynamics In ZIP code 63021, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1440 per month. This figure represents 14.4% of the median household income in the area, which stands at $120,177. The FMR is designed to ensure that low-income families can afford decent housing, but it often falls short of covering the actual rent costs in the market. For instance, the Zillow median price for a two-bedroom home in Ballwin is $215,460, translating to a monthly rental cost that is significantly higher than the FMR. The price-to-FMR ratio of 12.5x indicates that the average market rent is much higher than what the FMR suggests. As a result, voucher holders face significant constraints in finding suitable housing within their budget. They might have to look for properties that are smaller or less desirable, or they could struggle to find landlords willing to accept vouchers due to the disparity between the FMR and market rates. #### Affordability & Renter Profile The population of Ballwin is 55,666, with 19.3% of residents being renters. This relatively low percentage of renters suggests that the market is primarily composed of homeowners, indicating a potentially tight rental market. With a high occupancy rate of 96.5%, there is little room for new rentals to come online without displacing existing tenants. Given the median household income of $120,177, the typical renter in Ballwin is likely to be a middle-class individual who can afford higher rents. However, the 14.4% of median income allocated to the FMR for a two-bedroom unit implies that even for those eligible for Section 8 vouchers, the cost of renting is a substantial portion of their income. This makes it challenging for lower-income households to find affordable housing, especially since the FMR is far below the actual market rent. #### Investor Angle From an investor's perspective, the ZIP code 63021 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1440, while the Zillow median price suggests a market rent of approximately $17,122 annually ($215,460 / 12.5). This means that the actual market rent is around $1427 per month, which is slightly above the FMR. However, the gap is not large enough to make a significant difference in cash flow for investors relying solely on FMR. The investment grade in this market would be considered moderate, given the tight rental market and the high occupancy rate. Investors should be cautious about relying exclusively on Section 8 vouchers, as the FMR is substantially lower than the market rent, and finding tenants willing to accept these vouchers might be difficult. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1180, which is still a fraction of the median household income. This could provide a better chance of attracting voucher holders and maintaining a steady cash flow. 2. **Target Lower-Middle-Income Families**: While the median household income is high at $120,177, there are likely pockets of lower-middle-income families who might benefit from Section 8 vouchers. These families might be more inclined to rent rather than buy, making them a viable target for investors. Additionally, targeting areas with slightly lower property values could help bridge the gap between FMR and market rent. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 63021 is to **Hold**. The market is tight, with a high occupancy rate and a significant number of homeowners, making it challenging to find properties that are both affordable and attractive to voucher holders. While there are opportunities in smaller units, the overall investment grade is moderate, and the cash flow potential is limited by the disparity between FMR and market rent. Investors should carefully evaluate the local rental market and consider diversifying their portfolio to include other types of rental properties or areas with a higher percentage of renters. --- This analysis provides a comprehensive overview of the rental market dynamics in ZIP code 63021, focusing specifically on the implications for Section 8 voucher holders and investors. The data points clearly indicate that while there are some opportunities, the market conditions present several challenges that need to be carefully managed.

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.