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 | $1,560 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $423,139 | 0.47% | F |
| 3BR | $2,540 | $418,850 | 0.61% | D |
| 4BR | $2,930 | $520,151 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 63348, which encompasses Foristell, Missouri, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 63348 for fiscal year 2024 is set at $1,620, while the Census ACS data indicates that the average market rent is $1,503. This means the FMR is $117 higher than the market rent, representing an increase of approximately 7.8%.
This gap suggests that landlords participating in the Section 8 program can achieve a better yield compared to renting their properties at the open-market rate. Given that only 10.9% of residents in Foristell are renters, there is a limited pool of potential tenants who might be willing to pay above-market rents. Therefore, the Section 8 program offers a reliable source of rental income that is slightly above what the market would typically bear.
The median home value in Foristell is $439,316, and the median household income stands at $115,661. These figures indicate that the area is predominantly composed of homeowners with relatively high incomes. Consequently, the demand for rental properties is lower, and landlords must consider the benefits of the Section 8 program to ensure steady cash flow.
While the FMR is designed to reflect the average market rent plus a margin to cover administrative costs and profit, it also serves to subsidize housing for low-income families. In Foristell, where the median income is significantly higher than the national average, the presence of Section 8 tenants helps fill a niche market that might otherwise struggle to find affordable housing options. Landlords should be aware that the higher FMR rate compensates them for the additional paperwork and management required for Section 8 properties.
In summary, the $117 premium, or 7.8%, that the Section 8 program offers over the market rent makes it a compelling option for landlords in Foristell, Missouri. It provides a guaranteed income stream that is slightly above the local market rate, ensuring a stable investment even in a market with low rental demand.
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.