Section 8 Fair Market Rent (FMR) for ZIP 63129 - 2027

Investment Score for ZIP 63129

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	$1,050
1 Bedroom	$1,090
2 Bedrooms	$1,330
3 Bedrooms	$1,710
4 Bedrooms	$1,970
5 Bedrooms	$2,285
6 Bedrooms	$2,559
7 Bedrooms	$2,764
8 Bedrooms	$2,902

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	$1,090	$114,854	0.95%	C
2BR	$1,330	$196,504	0.68%	D
3BR	$1,710	$322,634	0.53%	F
4BR	$1,970	$446,281	0.44%	F
5BR	$2,285	$504,614	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63129 (Oakville, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63129 is set by HUD for 2026 as follows: - 0BR: $940 - 1BR: $980 - 2BR: $1200 - 3BR: $1540 - 4BR: $1790 To understand how these figures compare to actual rents, we need to consider the occupancy rate and the percentage of renters in the area. The occupancy rate of 96.9% suggests that the housing stock is nearly fully occupied, which can drive up rental prices. However, the Zillow median price for a 2BR home is $193,682, indicating that the property values are relatively high compared to the rental market. The price-to-FMR ratio of 13.5x for a 2BR unit implies that the median sale price is significantly higher than the rent. For voucher holders, the constraints are clear: they must find units that do not exceed the FMR. Given the high occupancy rate and the fact that the median household income is $94,888, it is likely that many landlords will be hesitant to accept vouchers due to the lower rent ceiling. This could create challenges for voucher holders in finding suitable accommodation. #### Affordability & Renter Profile The population of Oakville, MO is 51,553, with 20.8% of households being renters. This indicates a relatively small but significant rental market. With a median household income of $94,888, the majority of residents are likely able to afford market-rate housing, making the rental market competitive and potentially limiting the availability of affordable units. The affordability of a 2BR unit at $1200 is particularly relevant since it represents 15.2% of the median income. This suggests that while it is affordable for those earning the median income, it may still be challenging for lower-income individuals who rely on Section 8 vouchers. The high occupancy rate further supports the idea that this is a tight market, where demand outstrips supply, leading to upward pressure on rental prices. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash flow-positive opportunities at the FMR levels. Given the Zillow median price for a 2BR unit at $193,682, and the FMR of $1200, we can calculate potential returns. Assuming a typical cap rate of around 5%, the expected annual rental income would be approximately $9,684 ($193,682 * 0.05). This is significantly higher than the FMR of $1200 per month, suggesting that investors could potentially achieve positive cash flow if they can secure tenants willing to pay the FMR. However, the challenge lies in the tight market conditions and the reluctance of some landlords to accept vouchers. To determine the investment grade, we need to consider factors such as the local vacancy rate, competition, and the overall economic stability of the area. Given the high occupancy rate, the investment grade would likely be moderate to high, as long-term rental income is relatively stable and the area has a strong economic base. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high occupancy rate and the limited number of voucher holders, smaller units (0BR and 1BR) might be more attractive to investors. These units have lower FMRs ($940 and $980 respectively), which could make them easier to manage and potentially more profitable. Additionally, there is likely less competition for these units, as they are often sought after by single individuals or couples. 2. **Consider Location-Specific Strategies**: Investors should focus on areas within ZIP code 63129 that have a higher concentration of lower-income households. This could include neighborhoods near public transportation hubs or areas with a higher percentage of renters. By targeting these areas, investors can increase their chances of attracting voucher holders and achieving positive cash flow. 3. **Engage with Local Real Estate Agents and Property Managers**: To better understand the local rental market dynamics, investors should engage with local real estate agents and property managers. They can provide insights into which types of units are most in demand, the likelihood of securing voucher tenants, and any local regulations or incentives that could affect investment decisions. #### Bottom Line For Section 8-focused investors, the ZIP code 63129 presents a mixed picture. While the high occupancy rate and median income suggest a robust rental market, the tightness of the market and the reluctance of some landlords to accept vouchers could pose challenges. Therefore, the recommendation is to **Hold** investments in this ZIP code, focusing on smaller units and engaging with local market experts to navigate the complexities of the rental market. Given the high occupancy rate and the relatively low proportion of renters, the market is likely to remain competitive, making it difficult to find units that are both affordable and available. However, the potential for positive cash flow at FMR levels, combined with the strong economic foundation of the area, makes it a viable option for investors willing to work within the constraints of the Section 8 program.

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.