Section 8 Fair Market Rent (FMR) for ZIP 63031 - 2027

Investment Score for ZIP 63031

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	$1,300
1 Bedroom	$1,350
2 Bedrooms	$1,650
3 Bedrooms	$2,120
4 Bedrooms	$2,440
5 Bedrooms	$2,830
6 Bedrooms	$3,170
7 Bedrooms	$3,424
8 Bedrooms	$3,595

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	$1,350	$67,097	2.01%	A+
2BR	$1,650	$131,703	1.25%	A
3BR	$2,120	$179,697	1.18%	B
4BR	$2,440	$259,977	0.94%	C
5BR	$2,830	$280,524	1.01%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63031 (Florissant, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63031 in 2026 is set at $1440 for a two-bedroom unit. This figure represents 24.4% of the median household income in the area, which is $70,811. However, it is important to note that the actual rental market in Florissant is significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom home is $128,176, which translates to a monthly rent of approximately $1,068 based on typical rental yield assumptions. The price-to-FMR ratio of 7.4x indicates that the actual median rent is much higher than the FMR. This means that Section 8 voucher holders face significant constraints in finding suitable housing within their budget. A voucher holder would have difficulty renting a two-bedroom unit at the Zillow median price, as it exceeds the FMR by a substantial margin. The gap between FMR and actual rents suggests that landlords who want to participate in the Section 8 program must be willing to accept lower rents compared to the market average. #### Affordability & Renter Profile In ZIP code 63031, 27.7% of households are renters, indicating a moderate rental market presence. With an occupancy rate of 92.6%, the market appears to be relatively tight, suggesting that there is little excess supply of rental units. Given the median household income of $70,811, the affordability of housing becomes a critical issue. The FMR for a two-bedroom unit at $1440 is already a significant portion of the median income, representing nearly 20% of the monthly income for a household earning the median amount. This makes it challenging for low-income families to afford housing without assistance. The high price-to-FMR ratio further exacerbates the affordability problem, as it implies that many rental units are priced well above what is considered affordable for most residents. #### Investor Angle From an investor perspective, the ZIP code 63031 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1440, but the actual median rent is closer to $1068, based on the Zillow median price. This suggests that properties rented at FMR levels could potentially generate positive cash flow, especially if the investor can secure a property below the Zillow median price. However, the tight market conditions and high occupancy rates indicate that competition for rental units is strong. Investors should consider the potential for vacancy rates to rise if they cannot offer competitive amenities or pricing. Additionally, the investment grade of properties in this ZIP code would depend on factors such as location, condition, and demand for Section 8 units. Given the constraints faced by voucher holders, investors might need to focus on properties that are more likely to attract these tenants, such as those located in more affordable neighborhoods or offering better value for the rent. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should target properties that are priced closer to the FMR rather than the Zillow median price. For example, focusing on one-bedroom units priced at $1180 or two-bedroom units priced at $1440 would increase the likelihood of attracting Section 8 tenants. This strategy would also help mitigate the risk of vacancies due to the high price-to-FMR ratio. 2. **Consider Location and Condition**: Given the tight market, investors should prioritize properties that are in good condition and located in areas where Section 8 tenants are more likely to find suitable housing. This could include neighborhoods with lower overall rental costs or those that offer better access to public transportation and essential services. 3. **Engage with Local Housing Authorities**: To ensure a steady stream of Section 8 tenants, investors should actively engage with local housing authorities. Understanding the specific requirements and preferences of these authorities can help in tailoring the property offerings to meet the needs of voucher holders, thereby increasing the chances of successful tenancy. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 63031 is to **Hold**. While there is potential for positive cash flow, the tight market and high price-to-FMR ratio present significant challenges. Investors should carefully evaluate the specific characteristics of each property and consider the broader market dynamics before making any investment decisions. Targeting lower-rent properties and engaging with local housing authorities can help mitigate some of these risks, but the overall market conditions suggest that caution is warranted.

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.