Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The ZIP code 63106 presents a dynamic rental market with specific characteristics that can inform investment decisions. The Fair Market Rent (FMR) for the area is set at $980 for fiscal year 2024, indicating a benchmark that landlords should aim to meet or slightly exceed. However, the current market rent, according to the Census American Community Survey, stands at $773. This suggests that there might be a gap between what the government considers a fair rent and what the market is currently offering.
The median home value in ZIP 63106 is $117,135, which is relatively low compared to many other areas. This could imply that homeownership is more accessible, but it also reflects on the overall property values and potential appreciation rates. Despite the lower home values, the significant 88.3% renter share highlights a strong preference for renting over owning. Such a high percentage of renters can indicate ongoing long-term housing pressure, as fewer residents are buying homes and more are relying on rentals. This trend often points to an environment where demand for rental properties is robust and likely to persist.
While the data does not provide specifics on the percentage of price cuts or days on market (DOM), the disparity between the FMR and the actual market rent suggests that landlords might face challenges in increasing rents to match the FMR without potentially losing tenants. Landlords and small-portfolio investors need to balance the desire to increase rental income with the risk of pricing themselves out of the market.
In summary, ZIP 63106 is characterized by a high renter population and a rental market that is currently below the government's fair market guidelines. This snapshot indicates a market where demand for rental properties is likely to be steady, but landlords must remain cautious about rent hikes due to the current market conditions.
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.