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 | $1,150 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $249,880 | 0.58% | F |
| 3BR | $1,870 | $360,284 | 0.52% | F |
| 4BR | $2,160 | $556,699 | 0.39% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 63369 (Old Monroe, MO, St. Louis, MO-IL HUD Metro FMR Area metro) does not align favorably with Section 8 standards. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1050, whereas the Census ACS reports an average market rent of $1,294. This discrepancy suggests that landlords participating in the Section 8 program would need to accept a lower rent than the market rate, which could impact profitability.
Acquisition costs in the area are also a concern. With a median home value of $335,494, purchasing properties in ZIP 63369 can be quite expensive. Unfortunately, the data on days on market (DOM) and the percentage of homes requiring price cuts is not available, making it difficult to assess how quickly properties sell and at what price. However, the high median home value implies that acquiring properties may be challenging for small-portfolio investors due to the significant upfront investment required.
Tenant demand is present but limited. The total population of ZIP 63369 is 2,822, with 30.6% of residents being renters. This indicates that there is a base of potential tenants who might benefit from Section 8 housing, but the overall number is relatively small, which could limit the pool of eligible applicants.
In summary, while there is tenant demand in ZIP 63369, the rent math does not work in favor of Section 8 participation, and the acquisition cost is high. Landlords and small-portfolio investors should carefully consider these factors before deciding to enter this market with Section 8 properties. The high market rent compared to the FMR suggests that profitability might be constrained under the Section 8 program, and the limited population size could affect the availability of eligible tenants.
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.