Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,130 for ZIP 63047 in fiscal year 2024 will sufficiently cover the mortgage on a typical home in this area. Unfortunately, the available data does not specify the average home price in ZIP 63047. However, we can infer that the median home value is likely higher than the FMR, given that FMR reflects rental prices rather than purchase prices. To accurately assess if the FMR covers the mortgage, one must know the average home price and mortgage interest rates.
The same investor may also doubt if there is sufficient rental demand at an unspecified vacancy rate. According to the United States Zip Codes website, ZIP code 63047 has a slightly lower vacancy rate than the average, suggesting that there is reasonable demand for rental properties. This indicates that landlords and small-portfolio investors can expect a steady stream of tenants willing to pay the FMR.
A final concern could be whether HUD vouchers will keep pace with the market rents in ZIP 63047. While the specific voucher amount for fiscal year 2024 in this ZIP code was not immediately available, it's important to note that HUD adjusts voucher amounts annually based on local market conditions. Given that the FMR is set at $1,130, one can reasonably assume that voucher amounts will be adjusted accordingly to ensure they cover a substantial portion of the rent for qualified tenants. However, precise figures would require further investigation into local HUD policies and adjustments for the upcoming fiscal year.
In summary, while the data does not fully address all concerns, it provides a basis for cautious optimism regarding rental demand and voucher coverage. Landlords should continue to monitor local real estate trends and adjust their strategies accordingly.
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.