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 | $1,040 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $224,486 | 0.59% | F |
| 3BR | $1,690 | $300,875 | 0.56% | F |
U.S. Census Bureau data (2024)
In analyzing the potential investment opportunities in ZIP 63072, Robertsville, MO, several key concerns arise that must be addressed with the available data. One immediate objection is whether the Fair Market Rent (FMR) of $940 for the fiscal year 2024 will sufficiently cover the mortgage on a home priced at $236,462. To evaluate this, we must consider the typical mortgage terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 5%, the monthly payment on a $236,462 home would be approximately $1,275. This indicates that the FMR alone does not cover the mortgage payment, suggesting that investors should either seek properties below the median price or consider additional income streams.
The second concern is the adequacy of renter demand at a 7.5% vacancy rate. A 7.5% vacancy rate means that out of every 100 rental units, 7.5 are unoccupied. While this is relatively low compared to national averages, it does not guarantee high occupancy rates. However, the data shows that Robertsville, MO has a growing population, which could translate into increased rental demand over time. Additionally, the local economy's stability can contribute to sustained tenant interest. Despite this, the data does not provide detailed insights into the future growth trajectory of the area, leaving some uncertainty about long-term demand.
A final objection pertains to the ability of Housing Choice Vouchers to keep up with market rents, currently averaging around $985. The FMR is set by the U.S. Department of Housing and Urban Development (HUD) and is intended to reflect the average rent for a modest home in the area. In ZIP 63072, the FMR is slightly below the market rent, indicating a potential gap between voucher amounts and what landlords might charge. However, HUD adjusts FMRs annually based on changes in housing costs and economic conditions. If the trend continues, it is likely that voucher amounts will increase to meet the rising market rents. Nonetheless, this adjustment process does not guarantee immediate alignment with market rents, and investors should prepare for periods where voucher payments may fall short of covering the full market rent.
To summarize, while the FMR of $940 for ZIP 63072 does not fully cover the mortgage on a median-priced home, there are strategies to mitigate this issue. The relatively low vacancy rate suggests a decent level of demand, but future trends remain uncertain. Lastly, the Housing Choice Vouchers are expected to align with market rents over time, though they may lag behind in the short term. These points highlight both the challenges and the potential of investing in this area, requiring careful consideration and strategic planning.
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.