Section 8 Fair Market Rent (FMR) for ZIP 63136 - 2027

Investment Score for ZIP 63136

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	$970
1 Bedroom	$1,010
2 Bedrooms	$1,230
3 Bedrooms	$1,580
4 Bedrooms	$1,820
5 Bedrooms	$2,111
6 Bedrooms	$2,364
7 Bedrooms	$2,553
8 Bedrooms	$2,681

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	$1,010	$41,633	2.43%	A+
2BR	$1,230	$63,959	1.92%	A+
3BR	$1,580	$104,562	1.51%	A+
4BR	$1,820	$127,048	1.43%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63136, Saint Louis County, Missouri #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63136, as determined by HUD for 2026, is set at $1,100 for a two-bedroom unit. This amount represents 32.1% of the median household income of $41,154, indicating that it is a significant portion of what most residents can afford. However, the actual rent for a two-bedroom unit in this area is notably higher, with the Zillow median price for a two-bedroom property being $66,059. When we convert this annual figure into a monthly rent, it equates to approximately $5,505 per month, which is nearly five times the FMR ($5.0x). This substantial gap between FMR and actual rents places significant constraints on voucher holders. They may struggle to find units that accept their vouchers, as landlords might prefer higher-paying tenants who do not require government assistance. Additionally, the limited budget of voucher holders means they often have to settle for lower-quality housing options that fall within the FMR range. #### Affordability & Renter Profile ZIP code 63136 has a population of 40,929, with 53.1% of households being renters. The occupancy rate stands at 79.0%, suggesting a moderately tight rental market. Given the high percentage of renters and the relatively low occupancy rate, there is a notable demand for rental properties, but not all units are occupied, indicating some supply. The median household income of $41,154 is relatively low compared to the national average, which makes the affordability of housing a critical issue. With 53.1% of the population renting, and the majority likely having incomes below the median, the market is heavily reliant on affordable housing options. The fact that 32.1% of the median income is allocated to a two-bedroom unit indicates that many residents are already stretched thin financially, making it challenging for them to afford higher rents without assistance. #### Investor Angle From an investor’s perspective, the ZIP code 63136 presents a mixed picture when considering cash flow at the FMR level. Given that the FMR for a two-bedroom unit is $1,100, and the actual market rent is around $5,505, the disparity is stark. However, for those focusing specifically on Section 8 vouchers, the cash flow would be based on the FMR. To determine if this ZIP code is cash-flow positive at the FMR, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate where these costs total about $700 per month for a two-bedroom unit, the net cash flow at the FMR would be $400 per month. This is a modest profit margin, especially when considering the potential challenges of finding tenants willing to pay only the FMR. In terms of investment grade, the ZIP code 63136 appears to be a moderate-risk investment. The high percentage of renters and the tight market suggest a steady demand for rental properties. However, the low median income and the high proportion of FMR-rented units indicate that the market is sensitive to economic downturns and changes in government funding for housing assistance programs. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that can be rented out at or slightly above the FMR levels. For a two-bedroom unit, this means targeting properties that can be rented for around $1,100 per month. This strategy aligns with the needs of the local population and maximizes the likelihood of finding tenants who can utilize Section 8 vouchers. 2. **Consider Property Quality**: Given the high demand for affordable housing, investing in properties that are well-maintained and offer basic amenities can help attract tenants. Properties that are in good condition and priced at the FMR will likely have a better chance of being occupied and generating consistent cash flow. 3. **Engage with Local Landlords**: Networking with existing landlords in the area can provide valuable insights into the local rental market dynamics. Understanding how other landlords manage their properties and the challenges they face can help new investors navigate the complexities of the Section 8 program and the local rental market. #### Bottom Line For investors focused specifically on Section 8 vouchers, the ZIP code 63136 presents a moderate opportunity. While the market is tight and there is a high demand for rental properties, the low median income and high proportion of renters make it challenging to generate significant cash flow. Therefore, the recommendation for Section 8-focused investors is to **Hold**. Acquiring properties at or near the FMR levels can provide a stable, though modest, cash flow. However, investors should be prepared for the challenges associated with finding tenants who can use their vouchers effectively and managing properties in a market where affordability is a significant concern.

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.