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 | $1,190 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $297,542 | 0.51% | F |
| 3BR | $1,940 | $362,782 | 0.53% | F |
| 4BR | $2,240 | $495,365 | 0.45% | F |
| 5BR | $2,598 | $647,443 | 0.4% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 63025 (Eureka, MO) for Section 8 purposes, they should follow this decision tree:
1) Does FMR $1380 (zip FY 2024) clear debt service on a $415,526 property?
No. The Fair Market Rent (FMR) of $1380 per month would not be sufficient to cover the debt service on a property valued at $415,526. Assuming a typical mortgage rate of around 4%, the monthly mortgage payment alone would be approximately $2000, without factoring in property taxes, insurance, and maintenance costs.
2) Is market rent $1,266 (Census ACS) above, at, or below FMR?
Below. The market rent in Eureka, MO, is $1,266, which is lower than the FMR of $1380. This indicates that while the property could potentially be rented out at the FMR rate, the local rental market suggests that it might be challenging to find tenants willing to pay above the market rate.
3) Are 16.8% renters + 9-day DOM enough demand?
It depends. With 16.8% of residents being renters and an average days-on-market (DOM) of 9 days, there is moderate demand for rental properties in Eureka, MO. However, the combination of low market rents and the high cost of servicing a $415,526 property makes it a risky investment solely for Section 8 purposes. Landlords should consider the broader rental market, potential for non-Section 8 tenants, and the financial stability of the area before making a decision.
In summary, if the primary goal is to invest in a property exclusively for Section 8 tenants, the answer is no. The FMR does not clear the debt service on a property of that value, and the market rent is below the FMR. If the landlord is willing to diversify their tenant base and can manage the property effectively, the answer becomes it depends on their overall investment strategy and risk tolerance.
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.