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 | $1,030 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $87,829 | 1.48% | A |
| 3BR | $1,670 | $99,142 | 1.68% | A+ |
| 4BR | $1,920 | $135,105 | 1.42% | A |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 63137, located in Bellefontaine Neighbors, MO, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1240, while the market rent, as measured by the Zillow Rent Index (ZORI), stands at $1385. This creates a gap of $145, or approximately 11.7%, between what landlords can expect from Section 8 vouchers and the prevailing market rates.
In Bellefontaine Neighbors, where 52.2% of residents are renters and the median home value is $95,111, the discrepancy highlights the financial implications for landlords who choose to participate in the Section 8 program. With a median income of $43,422, many residents rely on rental assistance to afford housing. However, accepting a Section 8 tenant means renting your property at a rate that is below the market standard, which could result in a lower yield compared to open-market rentals.
The cost of housing voucher tenants below open-market rates must be considered against the stability they provide. Section 8 tenants typically have their rent subsidized, reducing the risk of non-payment and ensuring consistent income. Yet, the $145 difference per month represents a substantial reduction in potential earnings, especially when compounded over multiple units in a small portfolio. Landlords should weigh this against the benefits of guaranteed payments and the broader economic context of Bellefontaine Neighbors, where the demand for affordable housing is high.
To summarize, the gap between the FMR and market rent in ZIP 63137 indicates that landlords participating in the Section 8 program will receive less than the market rate for their properties. This plays a critical role in determining the investment yield and requires careful consideration of the local rental market dynamics and the financial health of the landlord's portfolio.
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.