Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The real estate market in ZIP 63380 presents a nuanced scenario for landlords and small-portfolio investors, with implications for both property values and rental yields. The median home value stands at $301,224, indicating a stable residential market where homes are neither overvalued nor undervalued compared to their intrinsic worth. The fact that there is no percentage of listings that have been reduced and the median days on market (DOM) remains unspecified suggests that the local housing market is balanced, without significant pressure from either buyers or sellers.
This balance is crucial for understanding the pricing power over the next 12-24 months. With no reduction in listing prices and an unspecified DOM, it implies that properties are selling close to their asking prices within a reasonable timeframe. This scenario supports the notion that landlords and investors can maintain or slightly increase asking prices for rentals without losing tenants to more affordable alternatives. The stability in home values also means that long-term investors can expect moderate appreciation, aligning with broader national trends rather than experiencing explosive growth or a downturn.
On the rental side, the Fair Market Rent (FMR) for ZIP 63380 in fiscal year 2024 is projected to be $1,080, while the current market rent is estimated at $833 based on Census ACS data. This gap signals potential for rental price increases, especially if the FMR projections hold true. Landlords and investors can gradually adjust rents upward, leveraging the expected rise in FMR to improve cash flows. However, it's important to note that such adjustments should be made cautiously, considering the economic environment and tenant affordability.
For long-hold investors, the appreciation thesis is anchored in the moderate growth expected in the residential real estate market. While the median home value suggests stability, the potential for rental price increases provides a secondary source of income growth. This dual-income strategy—capital appreciation and rental income—is a realistic approach given the current market conditions. However, the lack of specific DOM data and percentage of reduced listings indicates that there isn't a strong immediate push towards rapid appreciation or a significant shift in market dynamics that would warrant aggressive investment strategies.
In summary, the market in ZIP 63380 is poised for steady performance, offering opportunities for gradual price adjustments on both the purchase and rental sides. Landlords and small-portfolio investors should focus on maintaining quality properties and adjusting rents in line with FMR projections to ensure profitability and asset growth over time.
Data Sources: FMR data from HUD (2027). 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.