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 | $840 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $308,688 | 0.35% | F |
| 3BR | $1,370 | $440,040 | 0.31% | F |
| 4BR | $1,580 | $527,184 | 0.3% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 63377, Silex, MO, can be analyzed using the provided figures. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $930 per month. Using this figure, the annualized rental income would be $11,160 ($930 x 12 months).
To calculate the implied gross yield based on the median home value of $375,927, we divide the annualized rental income by the median home value. For the FMR scenario, the gross yield is calculated as follows:
$11,160 / $375,927 = 0.0297 or 2.97%
On the other hand, the market rent for a two-bedroom apartment is reported at $879 per month according to the Census ACS. This translates to an annualized market rent of $10,548 ($879 x 12 months). Applying the same calculation method, the gross yield for the market rent scenario is:
$10,548 / $375,927 = 0.0281 or 2.81%
Given the 10.6% renter density in Silex, MO, it is important to note that the number of days on the market (DOM) is listed as N/A. This lack of data makes it difficult to accurately predict the turnover rate and associated costs, which are critical components for determining the Net Operating Income (NOI).
The higher gross yield of 2.97% derived from the FMR scenario is more favorable for investors compared to the 2.81% yield from the market rent scenario. However, the actual market conditions suggest that the lower gross yield of 2.81% is more realistic. This is because the FMR is a government-set benchmark designed to ensure affordable housing, whereas the market rent reflects what tenants are actually paying in the area.
In conclusion, while the FMR provides a higher gross yield, the market rent scenario is likely more reflective of the true economic situation in Silex, MO. Landlords and small-portfolio investors should consider the actual rental rates and the relatively low renter density when making investment decisions in this ZIP code.
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.