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 | $990 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $42,844 | 2.92% | A+ |
| 3BR | $1,600 | $77,439 | 2.07% | A+ |
| 4BR | $1,850 | $95,328 | 1.94% | A+ |
| 5BR | $2,146 | $102,453 | 2.09% | A+ |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 63113, located in Saint Louis, Missouri, is poised for stability and cautious optimism over the next 12 to 24 months. The median home value currently stands at $52,931, indicating a market that is accessible to first-time buyers and investors looking for affordable entry points. A notable trend is the reduction in 0.3% of listings, suggesting that sellers are adjusting their expectations to align with buyer interest, which could imply a balanced market where neither buyers nor sellers hold overwhelming pricing power.
The median days on market (DOM) being listed as N/A suggests either limited recent transactional data or an exceptionally quick turnover rate, both of which indicate a robust demand for properties in this area. This high demand, combined with the relatively low median home value, signals a favorable environment for long-term investment. Homeowners and investors can expect steady, albeit modest, appreciation given the current economic indicators and historical trends in the region.
On the rental side, the Federal Market Rent (FMR) for ZIP 63113 is projected at $1,090 for fiscal year 2024, compared to the current market rent of $926, based on Census ACS data. This indicates a potential increase in rental income for property owners, especially those participating in Section 8 housing programs. The gap between the FMR and the actual market rent suggests that landlords who adjust their rents to align with the FMR could see improved cash flows, assuming they meet all the necessary requirements for Section 8 participation.
For long-hold investors, the realistic appreciation thesis is rooted in the gradual increase in property values due to inflation and the natural growth of the local economy. However, it's important to note that significant appreciation is unlikely, given the modest reduction in listings and the stable median home value. Investors should focus on generating consistent rental income and maintaining properties to ensure compliance with Section 8 standards, rather than expecting rapid capital gains.
The combination of a low median home value, slight adjustments in listing prices, and the potential for increased rental income positions ZIP 63113 as a solid choice for investors seeking a balance between affordability and steady returns. The setup implies a market where careful management and strategic positioning can lead to success, without the need for speculative predictions.
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.