Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The rent math in ZIP 63052 does not favor Section 8 tenants. The Fair Market Rent (FMR) set at $1,140 for the fiscal year 2024 is notably below the market rent indicated by ZORI, which stands at $1,438. This gap suggests that landlords may find it challenging to cover operational costs and maintain profitability when accepting Section 8 tenants.
Acquisition in ZIP 63052 is relatively affordable. The median home value is $321,215, and homes typically spend only 6 days on the market before receiving an offer. Additionally, the price-cut share is a mere 0.2%, indicating that homes are selling close to their asking prices, which makes it a favorable environment for acquiring properties without significant discounts.
Tenant demand in ZIP 63052 is moderate. With a total population of 28,712, the area has a 15.0% renter share, translating to approximately 4,307 potential renters. However, given the population size, this number may not be sufficient to sustain a high volume of rental activity, especially if the demand for Section 8 housing is limited.
In conclusion, ZIP 63052 presents a mixed scenario for Section 8 real estate investment. While the acquisition cost is reasonable, the disparity between the FMR and market rent suggests that landlords will likely face financial challenges when renting to Section 8 tenants. Furthermore, the moderate tenant demand implies that finding and retaining qualified Section 8 tenants could be difficult. Landlords and small-portfolio investors should carefully weigh these factors before entering this market.
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.