Section 8 Fair Market Rent (FMR) for ZIP 63385 - 2027

Investment Score for ZIP 63385

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,210
1 Bedroom	$1,260
2 Bedrooms	$1,540
3 Bedrooms	$1,980
4 Bedrooms	$2,280
5 Bedrooms	$2,645
6 Bedrooms	$2,962
7 Bedrooms	$3,199
8 Bedrooms	$3,359

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,540	$286,226	0.54%	F
3BR	$1,980	$376,291	0.53%	F
4BR	$2,280	$464,596	0.49%	F
5BR	$2,645	$552,357	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 63385 (Wentzville, MO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Wentzville, MO, in ZIP code 63385, are set by HUD for 2026 as follows: - 0BR: $1080 - 1BR: $1130 - 2BR: $1380 (which is 14.8% of the median household income) - 3BR: $1780 - 4BR: $2050 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to understand how these FMRs compare to actual rents in the area. The Zillow median price for a 2BR property in Wentzville is $282,027. This suggests that the rental market is significantly higher than the FMR. For instance, the price-to-FMR ratio for a 2BR unit is 17.0x, meaning the typical market rent for a 2BR unit is approximately $23,460 annually ($1380 x 17). Given this high ratio, voucher holders face significant constraints. They are likely to find it challenging to secure housing that fits within their budget, particularly for larger units. The 2BR FMR of $1380 is only a fraction of the actual market rent, which can be as high as $23,460 per year. This makes it difficult for voucher holders to find landlords willing to accept the lower payment levels. #### Affordability & Renter Profile The population of Wentzville is 51,330, with a median household income of $112,199. Only 16.1% of the population are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. The occupancy rate of 97.9% suggests that the market is quite tight, with very few vacant units available. This tightness can lead to upward pressure on rents, making it even harder for voucher holders to find affordable housing. Given the high median household income and low percentage of renters, those who do rent in Wentzville are likely to be individuals or families who prefer renting over buying due to lifestyle choices or financial circumstances that prevent them from purchasing a home. The high price-to-FMR ratio indicates that the rental market is not particularly affordable for low-income households, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 63385 presents a mixed picture. While the market is tight and occupancy rates are high, the FMRs are significantly below the market rents. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and managing rental properties. Assuming a 2BR unit with a market rent of $1380 per month, the annual rental income would be $16,560. However, at the FMR level, the annual rental income would be $16,560 * (1/17) = $984. This is a stark contrast and highlights the challenge for investors looking to generate positive cash flow solely based on FMRs. Investors should also consider other factors such as maintenance costs, property taxes, insurance, and vacancy rates. Given the high occupancy rate, vacancy risk is minimal. However, the low FMRs mean that the overall profitability of the investment would be limited unless the investor can attract tenants paying above FMR or non-voucher tenants. In terms of investment grade, Wentzville appears to be a stable market with strong demand and high occupancy rates. However, the low FMRs suggest that the investment grade for Section 8-focused properties would be lower compared to markets where FMRs are closer to market rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units (0BR and 1BR) might be more attractive for voucher holders. These units have FMRs of $1080 and $1130 respectively, which are still far below the market rents but might offer better chances of finding willing landlords. For example, a 1BR unit at FMR would generate $13,560 annually, which is more feasible for investors compared to the 2BR unit. 2. **Consider Non-Voucher Tenants**: Investors should consider attracting non-voucher tenants who can pay market rents. The median market rent for a 2BR unit is around $1380 per month, which is much higher than the FMR. By targeting non-voucher tenants, investors can achieve better cash flow and potentially higher returns. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 63385 is to **Skip**. The high price-to-FMR ratio and the tight market conditions make it challenging to find properties that can generate positive cash flow at FMR levels. Additionally, the low percentage of renters and high median household income indicate that the area is not particularly suited for low-income housing, which is the primary target of Section 8 vouchers. However, investors interested in the broader rental market might find Wentzville appealing due to its high occupancy rates and stable demand. For those considering investing in the area, focusing on smaller units or targeting non-voucher tenants could provide a more viable path to generating positive cash flow.

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.