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 | $1,210 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $281,335 | 0.55% | F |
| 3BR | $1,980 | $386,570 | 0.51% | F |
| 4BR | $2,280 | $611,376 | 0.37% | F |
| 5BR | $2,645 | $1,402,552 | 0.19% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP 63117 in Richmond Heights, MO, are significant. First, consider the tenant turnover rate, which can be higher due to the discrepancy between the market rent of $1,653 and the Fair Market Rent (FMR) set at $1,300 for FY 2024. This difference means that tenants receiving vouchers might struggle to afford the higher market rates, leading to increased turnover.
Vacancy exposure is another critical concern. With the days on market (DOM) being N/A, it's unclear how long properties might remain vacant. However, the typical home value of $371,022 suggests that properties in this area are relatively expensive, which could translate into longer vacancy periods if the market rent exceeds what many renters can afford.
Deferred maintenance is also a risk factor. The median income of $90,921 indicates that homeowners might have limited financial resources to invest in regular property upkeep. This could lead to higher maintenance costs for landlords, especially when taking over properties that have been neglected.
Despite these risks, there are mitigating factors that make ZIP 63117 a potentially attractive market for Section 8 investments. The high renter share of 45.8% suggests a robust demand for rental housing, which typically translates into a higher number of Section 8 voucher holders seeking affordable housing. This high density of renters can provide a steady stream of applicants, reducing the likelihood of prolonged vacancies.
In conclusion, the risks associated with investing in ZIP 63117 as a first-time Section 8 landlord are moderate. While there are challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter share offers a counterbalance that can help stabilize the investment.
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.