Section 8 Fair Market Rent (FMR) for ZIP 63303 - 2027

Investment Score for ZIP 63303

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	$1,320
1 Bedroom	$1,380
2 Bedrooms	$1,680
3 Bedrooms	$2,160
4 Bedrooms	$2,490
5 Bedrooms	$2,888
6 Bedrooms	$3,235
7 Bedrooms	$3,494
8 Bedrooms	$3,669

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	$1,380	$149,723	0.92%	C
2BR	$1,680	$219,444	0.77%	D
3BR	$2,160	$345,005	0.63%	D
4BR	$2,490	$463,749	0.54%	F
5BR	$2,888	$548,670	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63303 (Saint Charles, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63303 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1,490 per month. This figure represents 18.0% of the median household income in the area, which is $99,138. The FMRs for other bedroom types are as follows: $1,170 for 0BR, $1,220 for 1BR, $1,920 for 3BR, and $2,220 for 4BR units. To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the percentage of renters in the population. With a 96.1% occupancy rate and 25.9% of the population being renters, it suggests that there is a strong demand for rental properties in this area. However, the FMRs may not fully reflect the actual rent levels, especially if there is a significant gap between what landlords charge and what the government deems fair. Given the high occupancy rate, landlords may be inclined to charge higher rents, which could make it difficult for Section 8 voucher holders to find affordable housing. The voucher program typically covers only up to the FMR, so tenants would have to pay any excess rent out-of-pocket. In a tight market like this, finding landlords willing to accept the voucher amount might be challenging. #### Affordability & Renter Profile The median household income in ZIP code 63303 is $99,138, indicating a relatively affluent community. Given that 25.9% of the population are renters, this suggests that there is a mix of homeowners and renters. The median rent for a two-bedroom unit is $1,490, which is indeed affordable when considering the median income. However, the price-to-FMR ratio for a two-bedroom unit is 12.2x, meaning the median home value is $217,250. This high ratio indicates that the rental market is significantly more expensive relative to the FMR, making it harder for low-income renters to find suitable housing. The high occupancy rate also points towards a tight rental market, where supply is likely constrained. This means that landlords have more leverage over pricing, and tenants may face competition for available units. Consequently, voucher holders might struggle to find units that fit within their budget, particularly since they can only cover up to the FMR. #### Investor Angle From an investor perspective, the key question is whether the rental market in ZIP code 63303 is cash-flow positive at the FMR. Given the high occupancy rate and the relatively affluent population, there is a strong likelihood that rental properties will be occupied. However, the challenge lies in the fact that the actual rents charged in the market are likely much higher than the FMRs. For instance, a two-bedroom unit has an FMR of $1,490, but the median home value is $217,250, suggesting that actual rents could be significantly higher. If landlords are charging rents above the FMR, then properties rented to Section 8 voucher holders may not generate sufficient cash flow to cover expenses such as mortgage payments, maintenance, and property taxes. Moreover, the investment grade of a property in this ZIP code would depend on its ability to attract and retain tenants. While the high occupancy rate is a positive indicator, the tight market conditions mean that investors must carefully evaluate the potential for vacancy and the willingness of landlords to accept lower rents through the voucher program. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties with fewer bedrooms, such as 0BR, 1BR, and potentially 2BR units. These units are more likely to be rented at or near the FMR, providing better cash flow. For example, a one-bedroom unit with an FMR of $1,220 is more manageable compared to a three-bedroom unit with an FMR of $1,920. 2. **Consider Property Location and Condition**: Given the tight market, investors should prioritize properties in desirable locations and those that are well-maintained. This will increase the likelihood of attracting tenants who are willing to pay closer to the FMR. Additionally, properties that are in good condition are more likely to be accepted by the local housing authority for the Section 8 program. 3. **Engage with Local Housing Authorities**: To ensure that properties are eligible for the Section 8 program, investors should engage with the local housing authorities to understand the specific requirements and processes. This will help in navigating the regulatory landscape and maximizing the potential for rental income. #### Bottom Line Based on the data provided, the recommendation for Section 8-focused investors in ZIP code 63303 is to **Hold**. While the occupancy rate is high, indicating strong demand, the actual rents charged in the market are significantly higher than the FMRs. This makes it challenging for voucher holders to find affordable housing, and investors may struggle to achieve positive cash flow if they rely solely on the FMR. However, the high median income and occupancy rate suggest that there is still a solid base of renters who can afford higher rents. Therefore, investors should hold onto their properties and consider strategies to attract both voucher holders and higher-paying tenants. This could involve offering a mix of unit sizes or focusing on properties that are more likely to be rented at or near the FMR.

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.