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 | $910 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $226,401 | 0.51% | F |
| 3BR | $1,480 | $350,752 | 0.42% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 63349, located in Hawk Point, Missouri, within the St. Louis, MO-IL HUD Metro FMR Area, reveals several key points regarding rental and housing dynamics. The HUD Fair Market Rent (FMR) for ZIP 63349 is set at $1130 per month for fiscal year 2024. This figure stands notably higher than the average market rent of $909 as reported by the Census ACS data.
The disparity between the HUD FMR and the market rent indicates that voucher tenants can generally cashflow at the FMR level. Landlords and small-portfolio investors can expect a positive cashflow when renting properties at the HUD FMR rate, which is $221 above the current market rent. This means that voucher tenants can cover the costs of renting standard units without requiring additional subsidies, making it a financially viable option for investors.
To further analyze the investment potential, consider the median home value in ZIP 63349, which is $319,878. Using the HUD FMR of $1130, we can calculate a rent-to-price ratio of approximately 0.0042 (or 0.42%). This ratio suggests that rental income represents a relatively small portion of the total property value, indicating that appreciation rather than rental income might be the stronger investment angle. However, given the positive cashflow from voucher tenants, both cashflow and appreciation could be compelling reasons to invest in this area.
The data does not provide specific information on the median days on market (DOM) or the percentage of price cuts shared by sellers, but these metrics typically influence the rent-versus-buy dynamics. In the absence of such data, the focus remains on the favorable cashflow situation provided by the HUD FMR compared to the market rent.
In conclusion, the strongest investor angle in ZIP 63349 is the combination of stable cashflow from voucher tenants and the potential for property appreciation, given the high median home value and the positive difference between the HUD FMR and market rent. This makes the area attractive for those seeking both financial stability and growth opportunities through real estate investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.