Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
The analysis of ZIP code 63151 within the St. Louis, MO-IL HUD Metro FMR area reveals several key points for landlords and small-portfolio investors.
Firstly, the rent math does not work favorably due to the Federal Market Rent (FMR) being set at $1290 for fiscal year 2024. This figure represents the maximum rent that can be charged to tenants receiving housing assistance under Section 8. However, the market rent for the area is listed as N/A, which suggests an incomplete dataset. Nonetheless, if the market rent is higher than the FMR, landlords may find it challenging to cover their costs without additional subsidies.
Secondly, the acquisition affordability in ZIP 63151 is questionable given the median home value is listed as N/A. The Days on Market (DOM) is also listed as N/A, which means we lack information on how quickly properties sell. Similarly, the percentage of homes requiring a price cut is marked as N/A, indicating insufficient data to determine whether acquiring properties in this area is financially prudent for investors.
Lastly, regarding tenant demand, the population and the percentage of renters in ZIP 63151 are both listed as N/A. Without these figures, it's impossible to accurately gauge the number of potential tenants who might seek rental properties in this area. A high percentage of renters typically signals strong demand for rentals, but the absence of data makes it difficult to draw conclusions.
Verdict: Based on the available data, investing in ZIP 63151 presents significant challenges. The rent math does not align well with the FMR, potentially leading to financial strain for landlords. Moreover, the lack of comprehensive data on median home values, DOM, price cuts, population, and renter share hinders a thorough assessment of acquisition affordability and tenant demand. Investors should proceed with caution and seek additional, more detailed local market data before making any investment decisions in this area.
Data Sources: FMR data from HUD (2027).
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.