Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
The decision to invest in ZIP 63338 (Unknown, MO) for Section 8 properties hinges on three key questions.
1) Does the Fair Market Rent (FMR) of $1380 cover the debt service on a property? The answer is contingent upon the specific property's financing terms. For a property with a manageable mortgage and minimal operational costs, the FMR could indeed cover the debt service. However, without detailed financials of the property in question, a definitive yes or no cannot be provided.
2) How does the market rent compare to the FMR? Unfortunately, the exact market rent figure for ZIP 63338 is unavailable. If the market rent exceeds $1380, then landlords might find it more profitable to lease to non-Section 8 tenants. Conversely, if market rents are below or equal to the FMR, then leasing to Section 8 participants becomes a more viable option.
3) Is there sufficient demand for rental properties? With an unspecified percentage of renters and an unknown number of days on the market (DOM), determining the adequacy of demand is challenging. Typically, if the rental rate is high and the DOM is low, it indicates strong demand. However, without these specifics, the demand analysis remains inconclusive.
To make a final decision:
Note: The analysis is limited by the lack of specific data points such as market rent, percentage of renters, and DOM. These figures are critical for making informed investment decisions.
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.