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 | $1,110 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,150 | $60,626 | 1.9% | A+ |
| 2BR | $1,410 | $89,706 | 1.57% | A+ |
| 3BR | $1,810 | $123,362 | 1.47% | A |
| 4BR | $2,090 | $183,038 | 1.14% | B |
| 5BR | $2,424 | $257,368 | 0.94% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP 63135, part of the St. Louis, MO-IL HUD Metro FMR Area, does not fully align with the Federal Market Rent (FMR) and the Zillow Observed Rental Index (ZORI). The FMR for the area stands at $1290, while the ZORI indicates a market rent of $1,346. This discrepancy suggests that landlords might struggle to cover costs if they rely solely on the FMR rates, as they would be undercharging by approximately $56 per month.
Acquisition in ZIP 63135 is relatively affordable. The median home value is $110,766, which is lower than many other areas in the St. Louis metropolitan region. Additionally, the days on market (DOM) average of 22 days and a price-cut share of only 0.3% indicate a competitive but stable housing market where homes sell quickly without significant price reductions. These factors make it easier for investors to acquire properties at reasonable prices.
Tenant demand in ZIP 63135 is strong. With a population of 18,381, nearly 45.8% of residents are renters. This substantial rental market provides a solid pool of potential tenants, ensuring that vacancies can be filled promptly. Given the high percentage of renters, there is a consistent need for rental properties, supporting steady occupancy rates.
Investors should approach ZIP 63135 with caution regarding rent pricing due to the disparity between FMR and market rates. However, the low median home value and quick sales cycle present opportunities for affordable acquisitions. Strong tenant demand offers assurance in maintaining occupancy levels. Overall, ZIP 63135 presents a mixed opportunity; it is favorable for property acquisition and sustaining tenancy, but requires careful consideration of rental pricing to ensure profitability.
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.