Section 8 Fair Market Rent (FMR) for ZIP 63123 - 2027

Investment Score for ZIP 63123

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	$1,080
1 Bedroom	$1,120
2 Bedrooms	$1,370
3 Bedrooms	$1,760
4 Bedrooms	$2,030
5 Bedrooms	$2,355
6 Bedrooms	$2,638
7 Bedrooms	$2,849
8 Bedrooms	$2,991

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	$1,120	$123,326	0.91%	C
2BR	$1,370	$219,029	0.63%	D
3BR	$1,760	$263,316	0.67%	D
4BR	$2,030	$389,568	0.52%	F
5BR	$2,355	$442,228	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63123 (Affton, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63123 is set by HUD for 2026, with specific rates for different bedroom sizes. For a two-bedroom unit, the FMR is $1230 per month. This represents approximately 19.2% of the median household income in Affton, which is $77,055. However, it is important to note that the actual rent prices in the area significantly exceed these FMRs. According to Zillow, the median price for a two-bedroom home is $211,889, which translates to a monthly rental cost of roughly $14.4 times the FMR. This suggests that actual rents are much higher than the FMR, potentially creating a challenging environment for Section 8 voucher holders who are constrained by the FMR limits. In practice, landlords may be hesitant to accept vouchers due to the high demand for rentals and the potential for higher returns on investment. #### Affordability & Renter Profile In Affton, 25.1% of the population are renters, indicating a moderate rental market presence. The occupancy rate of 93.9% suggests that there is little vacancy, making it a relatively tight market. Given that the median household income is $77,055, the FMR of $1230 for a two-bedroom unit is affordable for many residents. However, the actual rental costs, which are likely much higher, could pose significant challenges for lower-income households. The fact that 19.2% of the median income goes towards a two-bedroom unit under FMR indicates that while the FMR is affordable, the reality of rental prices may be far less so. This tight market dynamic can lead to increased competition among renters, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 63123 offers a mixed landscape. While the FMRs provide a baseline for rental pricing, the actual market rents are substantially higher. For instance, a two-bedroom unit priced at $211,889 would have a monthly rental cost of about $14.4 times the FMR, which is approximately $17,573 annually. This means that if an investor were to purchase a property at the median price, they would need to generate significantly more revenue to cover the mortgage and other expenses. Given the high price-to-FMR ratio, it is unlikely that an investor would find properties cash-flow positive at the FMR level. The median price of $211,889 for a two-bedroom home implies that the monthly mortgage payment alone would be around $1,000, assuming a 30-year fixed-rate mortgage at a 4% interest rate. This does not include maintenance, utilities, insurance, and other costs, which would further reduce profitability. Therefore, the investment grade for this ZIP code, especially for Section 8-focused investors, is low due to the high costs relative to the FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should consider focusing on one-bedroom or studio units, where the FMR is lower ($960 and $1000 respectively). These units might offer better cash flow opportunities, even though the overall market is tight. 2. **Consider Alternative Funding Sources**: Given the high price-to-FMR ratio, traditional financing might not be sufficient to achieve positive cash flow. Investors should explore alternative funding sources such as grants, tax credits, or partnerships that can help offset the higher acquisition costs. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help ensure a steady stream of Section 8 tenants. This can be crucial in a market where actual rents are much higher than the FMR, as it can help secure long-term tenancy and reduce vacancy rates. #### Bottom Line For Section 8-focused investors, the ZIP code 63123 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation is to **skip** this ZIP code unless you can secure properties at significantly below the median price or find alternative ways to improve cash flow. The high costs associated with purchasing properties in this area make it difficult to achieve positive cash flow when adhering strictly to the FMR guidelines.

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.