Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $210,844 | 0.52% | F |
| 3BR | $1,410 | $356,810 | 0.4% | F |
| 4BR | $1,630 | $438,215 | 0.37% | F |
U.S. Census Bureau data (2024)
Elsberry, MO, located in ZIP code 63347, is a small rural community with a total population of 3,140 residents. Only 6.0% of the residents are renters, indicating a predominantly owner-occupied area. The median household income in the region stands at $81,949, which is relatively high compared to the national average, suggesting a financially stable community. The median home value in Elsberry is $259,769, reflecting a modest yet comfortable living standard for homeowners.
From an investment perspective, the rental market in ZIP 63347 offers interesting opportunities. The Fair Market Rent (FMR) for the area, as set by the Department of Housing and Urban Development (HUD) for fiscal year 2024, is $1,060. This figure is notably higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), which is $863. This discrepancy presents a potential advantage for landlords who can leverage the higher FMR to attract Section 8 tenants while still offering rents below the HUD threshold.
The economic landscape of Elsberry makes it suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's low renter percentage and stable income levels reduce the risk of tenant turnover and default. The higher FMR compared to market rent provides a cushion for those managing properties under the Section 8 program. On the other hand, hands-on investors could find opportunities in improving properties to command closer to the FMR, thus maximizing returns. However, given the limited number of renters, the pool of potential Section 8 tenants is also smaller, which could affect the demand for subsidized housing units.
In summary, ZIP 63347 offers a balanced environment for Section 8 investments, with clear advantages in terms of financial stability and favorable rent differentials. Investors should consider the size of the rental market when deciding whether to pursue a hands-off or active management strategy.
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.