Location: St. Francois County, 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 | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $205,327 | 0.56% | F |
| 3BR | $1,490 | $310,603 | 0.48% | F |
| 4BR | $1,720 | $393,580 | 0.44% | F |
| 5BR | $1,995 | $494,458 | 0.4% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 63028, which includes Festus, MO, and parts of Jefferson and St. Francois counties, reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for ZIP 63028 in fiscal year 2024 is set at $1090. This figure is higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $933. This indicates that voucher tenants will generally cashflow at the FMR rate, providing a solid financial cushion for landlords.
To further understand the market dynamics, consider the median home value in ZIP 63028, which is $300,909. Using this figure, we can derive a rent-to-price ratio. At the HUD FMR rate of $1090, the annual rent would be approximately $13,080, resulting in a rent-to-price ratio of roughly 4.3%. This ratio suggests that rental income represents a significant portion of the property's value, making it an attractive investment for those focused on cashflow.
The rental market in ZIP 63028 is relatively efficient, with a 10-day median Days on Market (DOM) for rentals. This short DOM period implies strong demand for rental properties, which can help maintain steady occupancy rates. Additionally, the low price-cut share of 0.2% indicates that landlords are generally able to command their asking rents without needing to reduce prices, further supporting the cashflow potential of the area.
In terms of the broader housing market, the median home value provides a stable foundation for real estate investments. Given the strong rental market and the favorable rent-to-price ratio, the primary investor angle in ZIP 63028 is cashflow. Landlords and small-portfolio investors can expect consistent positive cashflow from Section 8 tenants, making it an ideal location for those seeking reliable rental income.
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.