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 |
|---|---|---|---|---|
| 1BR | $1,080 | $115,899 | 0.93% | C |
| 2BR | $1,320 | $165,910 | 0.8% | D |
| 3BR | $1,690 | $236,604 | 0.71% | D |
| 4BR | $1,950 | $259,727 | 0.75% | D |
| 5BR | $2,262 | $323,397 | 0.7% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 63112 in Saint Louis, Missouri reveals that voucher tenants will cashflow marginally at the HUD Fair Market Rent (FMR) of $1,110 for the fiscal year 2024. The Zillow Observed Rent Index (ZORI), which represents the actual market rent, stands at $1,375. This means that landlords would need to consider additional factors such as unit condition and location to ensure profitability.
To derive the rent-to-price ratio, we can use the median home value of $145,402. This yields a ratio of approximately 12.17%, calculated by dividing the annual rent ($1,375 x 12 months) by the median home value. This ratio suggests that rental income is relatively low compared to the value of homes in the area, indicating that appreciation might be a stronger investment angle than cashflow alone.
However, the data shows that the median Days on Market (DOM) is not applicable (N/A) and the price-cut share is a mere 0.3%. These figures suggest a stable market where properties are likely to sell quickly without significant price adjustments. While these metrics do not directly impact the cashflow or appreciation potential of rental investments, they indicate a robust local economy that supports both buying and renting activities.
In conclusion, the strongest investor angle in ZIP 63112 appears to be stability, given the rapid sales and minimal price cuts observed in the housing market. This stability ensures that both rental and home values remain consistent, providing a reliable foundation for investment decisions.
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.