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 | $1,170 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,210 | $104,799 | 1.15% | B |
| 2BR | $1,480 | $135,697 | 1.09% | B |
| 3BR | $1,900 | $303,226 | 0.63% | D |
| 4BR | $2,190 | $628,254 | 0.35% | F |
| 5BR | $2,540 | $870,647 | 0.29% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 63130 (University City, MO) for Section 8, follow this decision tree:
1) Does FMR $1370 (zip FY 2024) clear debt service on a $279,445 property?
No: The Fair Market Rent (FMR) of $1370 does not cover the debt service for a property priced at $279,445. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this price point, the FMR is insufficient to ensure profitability.
Yes: If your acquisition cost is lower than $279,445, the FMR can potentially cover debt service. For instance, if you purchase a property for less than $274,000, the $1370 FMR might be enough to meet debt obligations.
2) Is market rent $1,608 (ZORI) above, at, or below FMR?
Above: The Zillow Observed Rental Index (ZORI) of $1,608 is higher than the FMR of $1370. This indicates that market rents exceed Section 8 limits, making non-Section 8 rentals more profitable.
At or Below: If the ZORI were equal to or below the FMR, then Section 8 would be competitive with market rates. However, this is not the case for University City, MO.
3) Are 37.1% renters + 8-day DOM enough demand?
It Depends: With 37.1% of residents being renters and an average of 8 days on the market (DOM), there is a moderate level of rental demand. An 8-day DOM suggests properties are rented quickly, which is favorable. However, the demand must also align with the supply of Section 8 vouchers and the willingness of tenants to use them.
In conclusion, purchasing a property in ZIP 63130 for Section 8 is only advisable if the acquisition cost is significantly below $279,445 to ensure the FMR covers all expenses. Additionally, given the market rent exceeds the FMR, consider the potential benefits of renting outside the Section 8 program. Lastly, the rental demand is present but must be balanced against the specific requirements of Section 8 tenants.
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.