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 | $1,060 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $257,710 | 0.52% | F |
| 3BR | $1,730 | $334,487 | 0.52% | F |
| 4BR | $2,000 | $449,754 | 0.44% | F |
| 5BR | $2,320 | $516,207 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 63126, located in Crestwood, Missouri, reveals a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for ZIP 63126 in fiscal year 2024 is set at $1230, while the average market rent reported by the Census Bureau's American Community Survey (ACS) stands at $1121. This creates a positive gap of $109, or approximately 9.7%, in favor of landlords who participate in the Section 8 program.
The discrepancy between the FMR and the actual market rent indicates that landlords can achieve higher yields by accepting Section 8 vouchers. Given the market conditions in Crestwood, where only 13.9% of residents are renters, the demand for rental properties is relatively low compared to owner-occupied homes. However, the median home value of $336,615 suggests that homeownership is out of reach for many, making rental properties essential.
In this context, the median household income of $98,852 underscores the affordability challenges faced by potential tenants. Section 8 vouchers provide a reliable source of income for landlords, ensuring timely payments even when market rents are lower. By participating in the Section 8 program, landlords can capitalize on the government subsidy, which covers the difference between the market rent and what the tenant can afford based on their income. For a property renting at $1121, the landlord would receive the full $1230 FMR payment, effectively bridging the gap and providing a more stable and profitable rental income.
However, it's important to note that accepting Section 8 tenants comes with its own set of costs and considerations. Landlords must adhere to HUD regulations, which include maintaining the property to certain standards and undergoing regular inspections. Additionally, there might be delays in receiving payments due to administrative processes. Despite these factors, the financial advantage of the higher FMR compared to the market rent makes the Section 8 program an attractive option for increasing rental yields in Crestwood, MO.
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.