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 investment risk assessment for ZIP 63053 in FY 2024 highlights several critical factors that could negatively impact a landlord's experience with Section 8 properties. Firstly, tenant turnover poses a significant challenge. At a market rent of $1,125, landlords will face competition from tenants who can afford the higher Fair Market Rent (FMR) of $1,170. This discrepancy indicates that landlords might struggle to retain tenants, leading to frequent turnover and increased administrative costs.
Vacancy exposure is another concern. With the days on market (DOM) being N/A, it's unclear how long properties might remain vacant. This uncertainty can lead to financial strain as landlords wait for voucher holders to secure housing. Moreover, the deferred maintenance exposure is substantial. The typical home value is N/A, but the median income of $61,250 suggests that many residents might not have the financial means to cover extensive property repairs, which could be necessary over time.
Despite these challenges, there are mitigating factors that make ZIP 63053 an attractive market for Section 8 investments. The area has a high renter share of 18.2%, indicating a robust demand for rental properties. This high concentration of renters typically translates into a greater number of Section 8 voucher holders seeking housing, thereby reducing the risk of vacancies. Additionally, the presence of numerous renters often means a steady pool of potential tenants, which can help stabilize occupancy rates and mitigate the effects of high turnover.
In conclusion, while ZIP 63053 presents notable risks such as tenant turnover and deferred maintenance, the high renter density provides a strong counterbalance. For a first-time Section 8 landlord, the overall risk level is moderate.
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.