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 | $1,000 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $118,492 | 0.88% | C |
| 2BR | $1,270 | $168,653 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 63103 in Saint Louis, MO, highlights a significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1310, while the market rent, measured by ZORI, is $1448. This means there is a gap of $138, or approximately 10.5%, between what the government considers fair and what landlords can charge in the open market.
In Saint Louis, where 82.5% of residents are renters, the median home value is $129,545 and the median income is $40,943. Given these economic conditions, landlords should be aware that accepting Section 8 tenants comes with the cost of renting below the open-market rate. While the FMR provides a baseline for rental subsidies, it does not fully compensate landlords for the market rent they could otherwise command.
This situation makes it imperative for landlords to carefully consider the financial implications of participating in the Section 8 program. The lower rental income from voucher tenants must be weighed against the stability and reliability they often provide. Additionally, landlords should factor in the administrative costs associated with managing Section 8 properties, such as inspections and compliance with HUD regulations.
To put this into perspective, if a landlord has a property that would normally rent for $1448, accepting a Section 8 tenant at the FMR of $1310 represents a direct loss of $138 per month. Over the course of a year, this amounts to $1656 less in rental income compared to market rates. However, the trade-off might be a more consistent and stable tenancy, which can be beneficial in a city where over 80% of the population are renters.
Landlords and small-portfolio investors in ZIP 63103 should also consider the broader economic context of Saint Louis. With a median income of $40,943, many residents rely on assistance programs like Section 8 to afford housing. This demand for subsidized housing can create a steady stream of potential tenants, but it also means that competition for Section 8 vouchers will likely be high among landlords.
In conclusion, the gap between FMR and market rent in ZIP 63103 presents both challenges and opportunities for landlords. While it requires accepting a lower rental rate, the stability and security of having tenants who are guaranteed assistance through the Section 8 program can be a valuable asset in a highly rented market like Saint Louis, MO.
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.