Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $300,110 | 0.38% | F |
| 3BR | $1,480 | $357,481 | 0.41% | F |
| 4BR | $1,700 | $512,526 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP code 63055 encompasses the serene neighborhood of Labadie, Missouri, which is characterized by its modest size with a total population of 1,693 residents. Only 14.1% of the residents are renters, indicating a predominantly owner-occupied community. The median household income stands at a robust $79,125, suggesting that the area is economically stable and affluent. The median home value in the area is $384,846, reflecting the high quality and desirability of the housing stock.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 63055 in fiscal year 2024 is set at $1,080. However, the actual market rent, according to the Census American Community Survey (ACS), is lower at $986 per month. This discrepancy means that landlords participating in the Section 8 program can expect higher rental payments compared to the local market rates, potentially offering a better return on investment despite the relatively low percentage of renters in the area.
The economic landscape of Labadie, MO, makes it suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the Section 8 program provides a reliable source of income without the need for extensive property management. The difference between the FMR and market rent also offers a cushion against potential market fluctuations, ensuring a steady cash flow.
On the other hand, value-add buyers might find opportunities to improve properties and command rents closer to the FMR, leveraging the higher payment standard set by the government. With a median income significantly above the national average, there is a strong likelihood that improvements could be well-received by tenants and lead to increased rental values over time.
In conclusion, ZIP 63055 presents a favorable environment for Section 8 investments, balancing the benefits of a stable, affluent community with the financial advantages of participating in a government-subsidized rental program. Whether aiming for passive income or active property enhancement, the economic conditions support both strategies effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.