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 | $1,290 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $186,668 | 0.71% | D |
| 2BR | $1,630 | $245,480 | 0.66% | D |
| 3BR | $2,090 | $368,225 | 0.57% | F |
| 4BR | $2,410 | $468,178 | 0.51% | F |
| 5BR | $2,796 | $484,780 | 0.58% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 63110 under the Section 8 program are significant. Tenant turnover is a critical issue, as the market rent stands at $1,499 while the Fair Market Rent (FMR) for FY 2024 is only $1,350. This discrepancy suggests that tenants who qualify for Section 8 vouchers may struggle to afford higher rents, leading to frequent moves and increased vacancy periods. The Days on Market (DOM) figure is not available, which further complicates the assessment of how quickly units might fill when vacant. Additionally, the typical home value in the area is $294,939, while the median income is $81,655. This combination indicates a substantial financial burden for maintaining properties, especially considering the deferred maintenance that can accumulate over time.
Despite these challenges, the high renter share of 56.4% offers a silver lining. A large proportion of renters typically translates into a robust demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. The high concentration of renters also suggests that there is a strong market for affordable housing, which can be leveraged by landlords willing to participate in the Section 8 program.
In summary, while there are notable risks associated with tenant turnover and property maintenance costs, the high renter share in ZIP 63110 creates a favorable environment for voucher holders, potentially offsetting some of these issues. However, the lack of data on vacancy exposure remains a concern. Based on the available information, the verdict for a first-time Section 8 landlord in ZIP 63110 is moderate risk.
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.