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 | $1,030 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $229,058 | 0.57% | F |
| 3BR | $1,670 | $295,360 | 0.57% | F |
| 4BR | $1,920 | $383,136 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 63383 (Warrenton, MO) reveals a notable difference between the federally determined Fair Market Rent (FMR) and the local market rental rates. For a two-bedroom unit, the FMR for fiscal year 2024 is set at $990 annually, translating to a monthly rent of approximately $82.50. This yields an annual gross income of $990 per unit. Given the median home value in the area is $300,961, the implied gross yield based on FMR is roughly 0.33%, calculated by dividing the annual rent by the property value.
In contrast, the market rent for a two-bedroom unit, according to the Census ACS, stands at $1,073 annually, or about $89.42 monthly. This results in a slightly higher annual gross income of $1,073 per unit. The implied gross yield using the market rent figure is approximately 0.36%, derived similarly by dividing the annual rent by the median home value.
Evaluating these figures against the 24.7% renter density suggests that the market rent scenario is more realistic. A significant portion of the population in Warrenton, MO, is already renting, indicating a robust demand for rental properties. While the FMR provides a baseline for subsidized housing, it often does not reflect the actual market conditions. Therefore, the higher gross yield of 0.36% based on market rent is likely closer to what investors can expect when considering Section 8 participation in this ZIP code.
Despite the lack of specific data on days on market (DOM), the existing high renter density supports the assumption that properties under market rent are more quickly occupied, thus offering a more stable and realistic yield. Landlords and small-portfolio investors should consider these figures when assessing the potential returns of Section 8 properties in Warrenton, MO, recognizing that while the gross yield is modest, it offers a consistent income stream suitable for those looking to diversify their investment portfolio with government-backed tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.