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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,080 | $108,199 | 1% | C |
| 2BR | $1,320 | $156,160 | 0.85% | C |
| 3BR | $1,690 | $245,081 | 0.69% | D |
| 4BR | $1,950 | $279,973 | 0.7% | D |
| 5BR | $2,262 | $360,088 | 0.63% | D |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 63118 under the Section 8 program are significant. First, consider the tenant turnover rate, which is likely to be higher due to the gap between the market rent of $1,217 and the Fair Market Rent (FMR) of $1,190 for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy as tenants seek housing that aligns with their budgetary constraints. Second, there's an inherent risk associated with vacancy exposure, as properties typically take 38 days to move from being listed to occupied. This extended period increases the likelihood of financial strain during times when the property is not generating rental income.
Additionally, landlords must be prepared for deferred maintenance costs. The typical home value in ZIP 63118 is $174,246, while the median household income stands at $57,762. This disparity suggests that many homeowners might delay necessary repairs and upgrades, leading to higher maintenance expenses for landlords who inherit such properties. Such costs can quickly eat into profit margins and require careful planning and budgeting to manage effectively.
Despite these challenges, the high renter share of 56.1% in ZIP 63118 offers a silver lining. A large proportion of renters often correlates with a higher demand for housing vouchers, making it easier for landlords to find tenants who qualify for the Section 8 program. This demand can stabilize occupancy rates and mitigate some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.