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 | $940 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $144,929 | 0.82% | C |
| 3BR | $1,530 | $178,691 | 0.86% | C |
| 4BR | $1,760 | $216,788 | 0.81% | C |
U.S. Census Bureau data (2024)
ZIP code 63074 is situated in the city of Saint Ann, Missouri, representing a diverse suburban neighborhood with a total population of 15,793 residents. Over 46.6% of these residents are renters, indicating a significant demand for rental properties in the area. The median household income in this ZIP code stands at $51,610, which reflects a middle-class community where many residents might rely on government assistance programs such as Section 8 vouchers to afford housing. The median home value in ZIP 63074 is $156,678, suggesting that it offers affordable housing options compared to other areas in the region.
When it comes to rent economics, the Fair Market Rent (FMR) for ZIP 63074 in fiscal year 2024 is set at $1,130. This figure represents the maximum amount that a Section 8 tenant can be expected to pay towards their monthly rent. In contrast, the market rent, as measured by the Zillow Observed Rent Index (ZORI), is $1,257. This indicates that landlords participating in the Section 8 program could see a slight shortfall between the market rent and the FMR, but still maintain profitability given the relatively low median home value and the high percentage of renters in the area.
The discrepancy between the FMR and the market rent suggests that ZIP 63074 may be better suited for a hands-on value-add buyer rather than a hands-off voucher operator. A hands-on approach would allow an investor to renovate properties and potentially command higher rents that align more closely with the market rate, thereby maximizing returns. Additionally, the significant number of renters and the presence of a middle-class community with a reliance on Section 8 vouchers make it a viable option for those looking to invest in affordable housing while ensuring a steady stream of tenants through the government program. However, the investment strategy should also consider the potential for market rent adjustments and the ongoing need to balance property improvements with affordability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.