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 | $1,140 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $204,286 | 0.58% | F |
| 2BR | $1,440 | $277,319 | 0.52% | F |
| 3BR | $1,850 | $392,363 | 0.47% | F |
| 4BR | $2,130 | $637,086 | 0.33% | F |
| 5BR | $2,471 | $941,780 | 0.26% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 63119 for Section 8 tenants begin with tenant turnover. The market rent stands at $1,713, while the Fair Market Rent (FMR) for fiscal year 2024 is set at $1,250. This discrepancy suggests that landlords might face challenges in attracting and retaining tenants who can only afford the lower FMR rate, leading to higher turnover rates.
Vacancy exposure is another concern. With an average Days on Market (DOM) of just 13 days, it's crucial to understand that this figure reflects the speed at which properties are rented, but does not guarantee long-term tenancy stability. High turnover can lead to frequent vacancies, impacting cash flow and requiring continuous advertising and screening efforts.
Deferred maintenance is also a significant risk factor. Given the typical home value of $378,620 and a median income of $106,183, there may be limitations on how much tenants can contribute to property upkeep. Landlords must be prepared to handle maintenance costs proactively to avoid deterioration of the property, which can be financially burdensome.
Despite these risks, the high renter share of 26.8% in ZIP 63119 indicates a robust demand for rental housing. This translates into a higher likelihood of finding Section 8 tenants willing to use their vouchers in the area, reducing the overall risk of vacancy and providing a steady stream of income for landlords who can navigate the challenges effectively.
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.