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 | $1,000 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $70,137 | 1.81% | A+ |
| 3BR | $1,630 | $86,288 | 1.89% | A+ |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 63133, located in Pagedale, Missouri, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1180, while the market rent, measured by the Zillow Rent Index (ZORI), stands at $1258. This creates a gap of $78, or approximately 6.6%, between what landlords can charge through the Section 8 program and the open-market rental rates.
Given that the FMR is lower than the market rent, landlords must understand the implications of accepting housing vouchers. The cost of housing voucher tenants below open-market rates means landlords will have to accept a slightly reduced rent compared to what they could potentially earn from non-voucher tenants. However, this reduction is offset by the stability and reliability of Section 8 payments, which are guaranteed by the government.
In Pagedale, where 52.5% of residents are renters and the median home value is $78,542, the median household income of $39,293 suggests that many residents rely on assistance programs like Section 8 to afford housing. Despite the gap, the steady cash flow and the security of having a tenant who is backed by the federal government can be an attractive proposition for landlords, especially given the local economic conditions.
To summarize, the $78 difference represents a 6.6% reduction from the market rate, but it comes with the benefit of consistent rental income. Landlords should weigh this against the potential for vacancy and the challenges of finding reliable tenants in a market where half of the population already relies on rental assistance. The Section 8 program in ZIP 63133 offers a balanced approach to maintaining occupancy and ensuring financial stability, despite the slight concession on rental rates.
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.