Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
The analysis for the Section 8 program in ZIP code 63032 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 63032 is set at $1290. However, the current market rent data is unavailable, which makes it challenging to provide an exact dollar figure or percentage gap. Despite this limitation, we can still draw some conclusions based on the available FMR.
In the context of Unknown, MO, where specific rental statistics such as the percentage of renters, median home value, and median income are not provided, the FMR serves as a benchmark for assessing the viability of renting to voucher holders. If the FMR exceeds the market rent, landlords and small-portfolio investors can capitalize on the difference by accepting Section 8 vouchers. This scenario turns the ZIP code into a yield play, as the government will pay a rate that is higher than what the open market would offer, thus increasing the landlord's revenue per unit.
Conversely, if the FMR is below the market rent, landlords who accept Section 8 vouchers are effectively subsidizing the cost of housing for their tenants. The financial impact of this arrangement depends on the extent of the gap. Landlords must weigh the benefits of guaranteed rent payments against the potential loss of income they could earn by renting at market rates. In either case, the decision to participate in the Section 8 program should be informed by a thorough understanding of local market conditions and the specific terms of the housing vouchers.
Given the lack of precise market rent data, landlords and investors should stay informed about local rental trends and consider conducting their own market research to better understand the potential gap and its implications. This includes surveying other rental properties in the area and consulting with local real estate professionals to get a clearer picture of the rental landscape in ZIP 63032.
Data Sources: FMR data from HUD (2027).
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.