Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 63041 reveals a significant gap between the Fair Market Rent (FMR) of $1220 and the average monthly rent of $1089. This gap is $131, representing approximately 12% of the market rent.
The FMR being higher than the market rent means that voucher tenants can provide a yield play for landlords and small-portfolio investors. With voucher tenants, landlords can secure a steady income stream that exceeds the typical market rent, making it financially advantageous even in a market where the median home value is $264,290 and the median income is $68,750. Despite the low percentage of renters (0.0%), the higher guaranteed income from Section 8 vouchers can offset the risks associated with managing properties in this area.
The high vacancy rate of 20.9% indicates that there is considerable competition for tenants, which can make attracting and retaining voucher tenants particularly beneficial. However, it also underscores the importance of rigorous tenant screening and maintaining strong local relationships to ensure a stable occupancy rate.
In conclusion, while ZIP 63041 presents challenges, the opportunity to leverage Section 8 vouchers for higher-than-market rental income makes it a viable investment option for those willing to execute a hands-on management strategy. The gap between FMR and market rent highlights the potential for generating positive cash flow, even in a market with below-average income levels and high mobility.
Data Sources: FMR data from HUD (2027). 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.