Section 8 Fair Market Rent (FMR) for ZIP 63301 - 2027

Investment Score for ZIP 63301

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	$1,100
1 Bedroom	$1,150
2 Bedrooms	$1,400
3 Bedrooms	$1,800
4 Bedrooms	$2,070
5 Bedrooms	$2,401
6 Bedrooms	$2,689
7 Bedrooms	$2,904
8 Bedrooms	$3,049

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,150	$162,305	0.71%	D
2BR	$1,400	$257,659	0.54%	F
3BR	$1,800	$313,196	0.57%	F
4BR	$2,070	$437,938	0.47%	F
5BR	$2,401	$531,431	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63301 (Saint Charles, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 63301, as per the 2026 data, indicate that the rent for a two-bedroom unit is set at $1220. This figure represents 17.2% of the median household income in the area, which is $85,308. The FMRs for other bedroom sizes are $960 for zero-bedroom units, $1000 for one-bedroom units, $1570 for three-bedroom units, and $1810 for four-bedroom units. However, the actual rental market in Saint Charles, MO, as indicated by Zillow, shows a median price for a two-bedroom unit at $253,271. This translates into a price-to-FMR ratio of 17.3x, meaning that the actual market rent for a two-bedroom unit is significantly higher than the FMR. For voucher holders, this implies that they will face significant constraints in finding affordable housing. The FMR is only a fraction of what the market demands, making it challenging for renters with vouchers to find suitable accommodations without exceeding their budget. #### Affordability & Renter Profile In ZIP code 63301, 28.2% of the population are renters, indicating a substantial demand for rental properties. The occupancy rate of 93.7% suggests that the market is relatively tight, with few vacancies available. Given the high median home value and the low FMR compared to market rates, it is likely that many renters are low-income individuals who rely on assistance programs like Section 8 vouchers. However, the gap between the FMR and market rent makes it difficult for these renters to find housing that fits within their budget. This tight market means that landlords have a significant advantage in setting rental prices, which can further exacerbate the affordability issue for low-income renters. The median household income of $85,308 indicates that while the area is not impoverished, there is still a segment of the population that struggles with housing costs, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 63301 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1220, but the actual market rent is much higher at $253,271. This discrepancy means that investors who are willing to accept FMR rates will likely struggle to achieve positive cash flow. The high price-to-FMR ratio of 17.3x suggests that the market is overvalued relative to the FMR, making it less attractive for investors focused solely on Section 8 vouchers. The investment grade in this area would be considered low due to the difficulty in finding tenants who can afford the FMR rates and the limited number of units that might be available at these prices. Investors should carefully consider the potential for negative cash flow and the time required to find suitable tenants if they decide to enter this market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as zero-bedroom or one-bedroom apartments. These units have lower FMRs ($960 and $1000 respectively), which could potentially offer better cash flow opportunities despite the tight market conditions. Additionally, these units might be more accessible to voucher holders due to the lower rent requirements. 2. **Consider Subsidies Beyond Section 8**: Due to the high cost of living in Saint Charles, MO, investors should explore additional subsidies and assistance programs beyond just Section 8 vouchers. Programs like Low-Income Housing Tax Credits (LIHTC) or state-specific rental assistance programs could provide additional financial support to make properties more affordable and improve the likelihood of positive cash flow. 3. **Evaluate Long-Term Potential**: While the current market conditions suggest a challenging environment for Section 8-focused investors, the long-term potential of the area should also be considered. With a median household income of $85,308 and a growing population, there is a possibility that the rental market could become more balanced over time. Investors might want to hold off on immediate purchases and wait for market conditions to stabilize, or they could invest in properties with the intention of converting them to market-rate rentals once the demand for affordable housing decreases. #### Bottom Line Given the high price-to-FMR ratio and the tight market conditions, the recommendation for Section 8-focused investors in ZIP code 63301 is to **skip** this market. The current dynamics make it difficult to achieve positive cash flow, and the limited availability of units at FMR rates means that finding suitable tenants could be a prolonged process. Investors should look for areas where the FMR is closer to market rates or where there is a higher percentage of renters who can afford FMRs. Alternatively, they could explore other types of subsidies or wait for market conditions to change before considering an investment in this ZIP code.

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.