Location: Montgomery County, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The ZIP code 63381 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant risk, as the market rent stands at $935, while the Fair Market Rent (FMR) for FY 2024 is $1290. This disparity can lead to higher turnover rates as tenants seek properties that align with their budget, particularly when they receive vouchers that cover up to the FMR. Additionally, vacancy exposure is a concern due to the lack of data on days on market (DOM), which makes it difficult to predict how quickly a property might be rented out. The typical home value in this area is $338,721, and the median income is $111,890, indicating that landlords may face deferred maintenance issues as many residents might struggle to afford necessary repairs without substantial landlord support.
However, these risks must be weighed against the high concentration of renters in the area, with 27.7% of the population being renters. High renter density generally correlates with a greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the risks associated with vacancy and deferred maintenance.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.