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 | $1,190 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $232,650 | 0.62% | D |
| 3BR | $1,860 | $510,561 | 0.36% | F |
| 4BR | $2,150 | $881,709 | 0.24% | F |
| 5BR | $2,494 | $1,119,182 | 0.22% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 63127, which encompasses Sunset Hills, MO, within the St. Louis County area, reveals a competitive rental environment. The HUD Fair Market Rent (FMR) for FY 2024 stands at $1490, whereas the Census ACS reports an average market rent of $1771. This indicates that voucher tenants would only cashflow marginally at the FMR rate, given the current market conditions.
To understand the broader investment landscape, consider the median home value of $657,145. This figure allows us to derive the rent-to-price ratio, which in this case is approximately 1.17%. This ratio suggests that the rental income generated from properties in this area does not significantly contribute to the overall property value, indicating that appreciation might be a more compelling angle for investors rather than relying solely on rental income.
The dynamics between renting and buying in this area are further influenced by the lack of significant data on days on market (DOM) and price cut percentages. With both these metrics marked as N/A, it's challenging to gauge how quickly properties sell and at what discount, but the absence of such information generally implies a stable market where neither buyers nor sellers are under pressure to negotiate aggressively.
In conclusion, while the cashflow potential for Section 8 investors in ZIP 63127 is modest due to the gap between HUD FMR and market rents, the strong appreciation potential of properties in this high-value area represents the most robust investment angle.
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.