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 | $970 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $228,987 | 0.54% | F |
| 3BR | $1,580 | $315,990 | 0.5% | F |
| 4BR | $1,820 | $415,122 | 0.44% | F |
| 5BR | $2,111 | $523,070 | 0.4% | F |
U.S. Census Bureau data (2024)
The real estate market in Troy, Missouri (ZIP 63379), presents a nuanced picture for both landlords and small-portfolio investors. With a median home value of $310,923, the area reflects a stable housing environment. However, recent data shows that only 0.2% of listings have reduced their prices, indicating a strong seller's market where homes are holding their values. The 7-day median Days on Market (DOM) suggests rapid sales, further reinforcing the notion that pricing power remains firmly in the hands of sellers.
On the rental side, the Fair Market Rent (FMR) for ZIP 63379 is projected at $1,180 for fiscal year 2024, while the current market rent, measured by Zillow's Observed Rental Index (ZORI), stands at $975. This gap between FMR and ZORI signals an opportunity for landlords to potentially increase rents without significant pushback from tenants, given the expected rise in fair market rates.
For long-term investors, the setup in Troy implies a cautious approach to appreciation. While the market currently supports strong pricing power and rental rates are likely to rise, the modest reduction in price listings and rapid sales suggest that any future appreciation will be gradual rather than explosive. The data does not support a thesis of rapid capital growth but instead points towards a steady, reliable market. Investors should focus on cash flow opportunities, leveraging the gap between current rents and the anticipated FMR increase, rather than expecting substantial property value appreciation over the next 12-24 months.
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.