Section 8 Fair Market Rent (FMR) for ZIP 63033 - 2027

Investment Score for ZIP 63033

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	$1,110
1 Bedroom	$1,150
2 Bedrooms	$1,410
3 Bedrooms	$1,810
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

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	$1,150	$45,603	2.52%	A+
2BR	$1,410	$122,769	1.15%	B
3BR	$1,810	$193,045	0.94%	C
4BR	$2,090	$230,276	0.91%	C
5BR	$2,424	$247,733	0.98%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63033, Saint Louis County, Missouri #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63033, as set by HUD for 2026, is $1250 for a two-bedroom apartment. This figure represents 22.5% of the median household income of $66,776. However, it is important to understand how these FMRs compare to actual rental prices in the area. The Zillow median price for a two-bedroom home in this ZIP code is $120,458, which translates to a monthly mortgage payment of approximately $500-$600 based on typical financing terms. When considering the price-to-FMR ratio of 8.0x, it suggests that the actual rental prices are significantly higher than the FMR. For instance, a two-bedroom apartment priced at $120,458 would have a monthly rent of around $1000-$1200 if rented out, which is already close to the FMR but may still be challenging for voucher holders due to additional costs like utilities and security deposits. HUD’s FMR is designed to reflect the average market rent for decent, safe, and sanitary housing. In ZIP 63033, the gap between the FMR and the actual rental prices indicates that voucher holders might face difficulties finding suitable housing. Landlords may be hesitant to accept vouchers because the rent they receive through the program might not cover their expenses, especially if they are renting out properties at market rates. #### Affordability & Renter Profile ZIP 63033 has a population of 43,056, with 33.4% of households being renters. This means there are approximately 14,388 renter households in the area. Given the occupancy rate of 92.1%, it is clear that the rental market is relatively tight, with few vacant units available. The median household income of $66,776 suggests that while some residents can afford market-rate rents, others, particularly those relying on Section 8 vouchers, may struggle. The affordability of housing for low-income renters is a significant concern. With the FMR for a two-bedroom unit at $1250, representing only 22.5% of the median income, it is evident that many residents are paying a substantial portion of their earnings towards rent. This high rent-to-income ratio could lead to financial stress and potentially impact the overall stability of the rental market. #### Investor Angle From an investor perspective, the ZIP code offers both opportunities and challenges. The FMR for a two-bedroom unit is $1250, which is lower than the Zillow median price of $120,458. If we consider the typical mortgage payment range of $500-$600 per month, plus property taxes, insurance, and maintenance costs, the total monthly expense could range from $700-$900. At the FMR of $1250, this would result in a positive cash flow of approximately $350-$550 per month, assuming the property is rented out at the FMR. However, the investment grade must also take into account the tight rental market and the potential difficulty in finding tenants willing to pay the FMR. Additionally, the high price-to-FMR ratio of 8.0x implies that the market rents are substantially higher than the FMR, which could make it less attractive for investors focusing solely on Section 8 vouchers. They might find it challenging to compete with landlords who can charge higher rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1020, which is closer to the likely mortgage payment and associated costs. This could provide a better chance of achieving positive cash flow while still being affordable for voucher holders. 2. **Consider Location-Specific Factors**: Within ZIP 63033, certain neighborhoods might offer more affordable housing options. Investors should conduct a detailed neighborhood analysis to identify areas where rents are closer to the FMR. This could involve looking at older buildings that require minimal updates or properties in less desirable locations. 3. **Utilize Property Management Services**: Due to the tight rental market and the potential challenges in finding tenants willing to pay the FMR, utilizing professional property management services can be beneficial. These services can help in marketing the property effectively and managing tenant turnover, ensuring a steady stream of income. #### Bottom Line For investors focused on Section 8 vouchers, the recommendation for ZIP 63033 is to **Hold**. While there are opportunities to achieve positive cash flow, the high price-to-FMR ratio and the tight rental market present significant challenges. Investors should carefully evaluate the specific characteristics of individual properties and neighborhoods before making any investment decisions. Focusing on smaller units and leveraging property management services can mitigate some of these risks, but the overall market conditions suggest caution and a wait-and-see approach.

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.