Section 8 Fair Market Rent (FMR) for ZIP 63122 - 2027

Investment Score for ZIP 63122

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,260
1 Bedroom	$1,310
2 Bedrooms	$1,600
3 Bedrooms	$2,050
4 Bedrooms	$2,370
5 Bedrooms	$2,749
6 Bedrooms	$3,079
7 Bedrooms	$3,325
8 Bedrooms	$3,491

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,310	$155,150	0.84%	C
2BR	$1,600	$290,515	0.55%	F
3BR	$2,050	$464,164	0.44%	F
4BR	$2,370	$753,426	0.31%	F
5BR	$2,749	$1,027,774	0.27%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63122 (Kirkwood, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 63122 in 2026 indicate that the rent for a two-bedroom unit is set at $1420. This figure represents approximately 12.5% of the median household income in the area, which stands at $136,385. The FMRs for other bedroom types are as follows: $1110 for a zero-bedroom unit, $1160 for a one-bedroom unit, $1830 for a three-bedroom unit, and $2110 for a four-bedroom unit. However, the actual rental market in Kirkwood is significantly higher. According to Zillow, the median price for a two-bedroom home is $285,944, which translates to a monthly rent of around $1,660 if we assume a typical rental yield of 5%. This means the actual rent for a two-bedroom unit is nearly 1.2 times higher than the FMR. For voucher holders, this creates a significant constraint as they may struggle to find units within their budget. #### Affordability & Renter Profile Kirkwood has a relatively affluent population with a median household income of $136,385. Only about 18.1% of the residents are renters, indicating a predominantly owner-occupied community. The occupancy rate of 93.6% suggests that the housing market is quite tight, with limited availability of rental units. Given the high median income and low percentage of renters, it is likely that those who do rent are either young professionals, students, or families who have recently moved into the area and are waiting to purchase a home. The high price-to-FMR ratio of 16.8x further underscores the affordability challenge faced by renters, especially those relying on Section 8 vouchers. With the FMR for a two-bedroom unit being only $1420, while the actual market rent is closer to $1,660, there is a clear gap between what voucher holders can afford and what landlords are willing to accept. This tight market makes it difficult for voucher holders to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 63122 offers a mixed picture. While the rental market is strong and demand is high, the actual rents are significantly above the FMRs set by HUD. This means that landlords who rely solely on Section 8 vouchers may face challenges in covering their costs, particularly when considering the high property values and associated expenses such as taxes, maintenance, and insurance. To determine if this ZIP code is cash-flow positive at FMR, let’s consider the typical cost structure for a landlord. Assuming a property value of $285,944 and a mortgage rate of 4%, the monthly mortgage payment would be approximately $1,370. Adding property taxes (at 1.5% of the property value), insurance ($100 per month), and maintenance ($100 per month), the total monthly expenses would be around $1,770. This exceeds the FMR of $1420 for a two-bedroom unit, making it challenging to achieve positive cash flow without additional sources of income or subsidies. Given these dynamics, the investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors. The high cost of living and tight rental market make it less attractive compared to areas where rents are closer to the FMR. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median income and tight rental market, investors might want to target higher-income renters who can afford market rates. This could include young professionals or families who are willing to pay above the FMR to live in a desirable neighborhood like Kirkwood. 2. **Consider Mixed-Income Properties**: Develop properties that cater to both Section 8 voucher holders and higher-income renters. By offering a mix of units at different price points, landlords can ensure a steady stream of income while still participating in the affordable housing market. 3. **Seek Additional Subsidies**: Explore additional government programs or local initiatives that provide subsidies beyond the Section 8 program. This can help bridge the gap between the FMR and actual market rents, making the investment more viable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 63122 is to **skip** this market due to the high cost of living and the significant gap between FMR and actual market rents. The tight rental market and high expenses make it difficult to achieve positive cash flow. However, for investors willing to diversify their tenant base and target higher-income renters, this ZIP code could still present opportunities. Overall, the investment climate is challenging for those strictly relying on Section 8 vouchers.

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.