Section 8 Fair Market Rent (FMR) for ZIP 63304 - 2027

Investment Score for ZIP 63304

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	$1,550
1 Bedroom	$1,600
2 Bedrooms	$1,960
3 Bedrooms	$2,520
4 Bedrooms	$2,900
5 Bedrooms	$3,364
6 Bedrooms	$3,768
7 Bedrooms	$4,069
8 Bedrooms	$4,272

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	$1,600	$186,192	0.86%	C
2BR	$1,960	$237,411	0.83%	C
3BR	$2,520	$363,471	0.69%	D
4BR	$2,900	$491,702	0.59%	F
5BR	$3,364	$700,497	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63304 (Saint Charles, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 63304 in 2026 is set at $1730 for a two-bedroom unit. This figure represents 18.1% of the median household income of $114,442, which is relatively low compared to national standards where the threshold is typically around 30%. However, the actual rental market in Saint Charles is significantly higher. According to Zillow, the median price for a two-bedroom home is $236,485, which translates into a monthly rent of approximately $1182 based on typical mortgage payments (assuming a 4% interest rate and a 20% down payment). The price-to-FMR ratio of 11.4x indicates that the actual market rents are much higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. For instance, a three-bedroom unit has an FMR of $2230, but the actual market rent could be substantially higher, potentially exceeding the voucher amount by a significant margin. #### Affordability & Renter Profile With only 12.3% of the population being renters, Saint Charles is predominantly a homeowner community. The occupancy rate of 97.6% suggests that the rental market is quite tight, with very few vacant units available. Given the high median household income, most residents can afford to purchase homes rather than rent. This makes the rental market highly competitive and less affordable for those relying solely on Section 8 vouchers. The median household income far exceeds the FMR, indicating that the majority of residents can comfortably cover their housing costs without assistance. Consequently, the limited rental stock and high competition make it difficult for low-income renters to secure housing within their budget. #### Investor Angle For investors focusing on Section 8 properties, the dynamics in ZIP 63304 present both opportunities and challenges. While the FMRs are lower than market rents, they still offer a reasonable income stream. A two-bedroom unit at the FMR of $1730 would be cash-flow positive if the investor can manage expenses effectively. However, the high price-to-FMR ratio means that investors must consider the potential difficulty in finding tenants who qualify for Section 8 vouchers. Additionally, the tight rental market suggests that there might be fewer available units overall, which could limit the pool of properties that can be converted into Section 8 rentals. #### Specific Actionable Insights 1. **Target Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1410, which is still a substantial amount compared to the median rent. This strategy can help investors remain within the affordability range for Section 8 voucher holders while maximizing rental income. 2. **Consider Subsidized Housing Programs**: Investors might want to explore additional subsidized housing programs that complement Section 8 vouchers. These programs can provide additional financial support to tenants, making it easier to fill units and maintain cash flow. For example, Low-Income Housing Tax Credits (LIHTC) can reduce the effective cost of renting for low-income individuals, thereby increasing the likelihood of finding qualified tenants. #### Bottom Line Given the tight rental market and the high price-to-FMR ratio, the recommendation for Section 8-focused investors in ZIP code 63304 is to **Hold**. The area presents a challenging environment due to the limited number of renters and the high competition for rental units. While there are opportunities to invest in smaller units or explore complementary subsidies, the overall market conditions suggest that it may be difficult to achieve consistent cash flow and tenant satisfaction. Investors should carefully evaluate the local rental landscape and consider diversifying their portfolio to include areas with a higher percentage of renters and more favorable FMR-to-market rent ratios.

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.