Location: Washington County, 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 | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $740 | $104,520 | 0.71% | D |
| 2BR | $960 | $162,999 | 0.59% | F |
| 3BR | $1,160 | $240,974 | 0.48% | F |
| 4BR | $1,340 | $316,062 | 0.42% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 63628, Bonne Terre, Missouri, reveals a favorable environment for those seeking stable returns. The HUD Fair Market Rent (FMR) for the area is set at $900 for the fiscal year 2024, which is significantly higher than the market rent reported by the Census Bureau's American Community Survey (ACS), currently at $724. This means that voucher tenants will cashflow at the FMR, providing a consistent positive cash flow for landlords.
To understand the dynamics further, consider the median home value in the area, which stands at $202,302. Using the HUD FMR of $900, the rent-to-price ratio is approximately 0.44%, indicating that rental properties are undervalued relative to their purchase price. This makes the area attractive for both rental and potential homeownership investments.
The rental market in ZIP 63628 also shows strong liquidity with a median Days on Market (DOM) of 29 days, suggesting that rental listings move quickly once they are available. Additionally, the low price-cut share of 0.2% indicates that landlords are generally able to maintain their asking rents without having to reduce them, which supports the stability of the rental income.
In conclusion, the strongest angle for Section 8 investors in ZIP 63628 is the guaranteed positive cash flow from voucher tenants, who pay above the market rate. This provides a solid foundation for investment in the area, offering stability and predictable returns.
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.