Exploring Section 8 Multi-Family Investments in St. Louis, MO – Advice Needed

Investor · Member since 2024 · 18 posts · 3 votes

Hi everyone,

I’m currently evaluating a multi-family property in St. Louis, Missouri, and based on the numbers, it seems like it could be a great fit for Section 8 tenants.

I’d love to hear from anyone with experience in the St. Louis market:

• How strong is the demand for Section 8 housing in the area?

• Are there any specific neighborhoods or zip codes to target or avoid?

• Any insights into working with the St. Louis Housing Authority or tips for streamlining the inspection and approval process?

I’m excited about the opportunity but want to make sure I’m fully prepared before moving forward. Any advice or lessons learned would be greatly appreciated!

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Paul Cijunelis

Property Manager · Downers Grove, IL · Member since 2012 · 99 posts · 40 votes

Quote from @Dustin Hagemeier:

As someone in property management, I’m pleased to share that we’ve had significant success with the Section 8 program. [...] In fact, approximately 40% of our business involves the Section 8 program.

40%... It saddens me to see this percentage creeping upward constantly. So many dependent on government. I hope this improves.

S8 can be a challenge. I'm not in St Louis, rather Chicagoland. People you talk to will either love or hate S8. It depends on the experience they've had. For me, on my properties, it's been pretty good. But there are challenges for sure. The key for any tenant, S8 or not, is screening, imo.

You'll typically need to set up your account and get familiar with the process of working with the local housing authority. Reach out to them. They are the source. In terms of the areas, you will be best served driving it. I don't ever recommend someone buy a property having never seen or been there.

It sounds like @Dustin Hagemaier would be a great resource for you. As a PM, his team would be familiar with areas and could help underwrite the property and take care of the day to day headaches.

If you're going to do it alone, make sure you your due diligence: estoppels, inspection, review, consult with a local attorney familiar with the local regulations, etc. and good luck.

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
@Isaac Hanai As a lifelong St. Louisan, I would just remind anyone new to the area that St. Louis City is NOT part of St. Louis County. It's a quirk that very few areas of the country have.
Both the city and county have their own areas that have Section 8 residents, but the Housing Authorities that handle the programs are different. Based on your description, it sounds as if you're asking about the City's housing authority, is that correct?
[email protected]
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Isaac Hanai
OP
Investor · Member since 2024 · 18 posts · 3 votes
1y
Thank you for advice! I'm looking in St. Louis County.
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Dustin Hagemeier
Property Manager · O'fallon, MO · Member since 2024 · 10 posts · 3 votes
1y
Good afternoon, Isaac,

I hope this message finds you well. I wanted to reach out and offer some assistance with your question.

As someone in property management, I’m pleased to share that we’ve had significant success with the Section 8 program. Over time, we’ve developed a strong relationship with the Housing Authority across various neighborhoods and ZIP codes. In fact, approximately 40% of our business involves the Section 8 program.

If you’re considering a property management partner, I’d be happy to discuss this further. Regardless, I’d love to share more about our experiences and offer any assistance I can.
3 Reply
Isaac Hanai
OP
Investor · Member since 2024 · 18 posts · 3 votes
1y
Thats great to hear! Look forward to discuss further with you!
1 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Isaac Hanai make sure you FULLY understand the negatives of S8 programs, not just the mirage of consistent government rent payments.
[email protected]248-209-6824
Logical Property Management4.9458 Reviews
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Paul Cijunelis
Property Manager · Downers Grove, IL · Member since 2012 · 99 posts · 40 votes
1y
Quote from @Dustin Hagemeier:

As someone in property management, I’m pleased to share that we’ve had significant success with the Section 8 program. [...] In fact, approximately 40% of our business involves the Section 8 program.
40%... It saddens me to see this percentage creeping upward constantly. So many dependent on government. I hope this improves.

S8 can be a challenge. I'm not in St Louis, rather Chicagoland. People you talk to will either love or hate S8. It depends on the experience they've had. For me, on my properties, it's been pretty good. But there are challenges for sure. The key for any tenant, S8 or not, is screening, imo.

You'll typically need to set up your account and get familiar with the process of working with the local housing authority. Reach out to them. They are the source. In terms of the areas, you will be best served driving it. I don't ever recommend someone buy a property having never seen or been there.

It sounds like @Dustin Hagemaier would be a great resource for you. As a PM, his team would be familiar with areas and could help underwrite the property and take care of the day to day headaches.

If you're going to do it alone, make sure you your due diligence: estoppels, inspection, review, consult with a local attorney familiar with the local regulations, etc. and good luck.
3 Reply
Isaac Hanai
OP
Investor · Member since 2024 · 18 posts · 3 votes
1y
@Drew Sygit thank you for looking out! Would love to learn more and hear your experiences.
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Isaac Hanai
OP
Investor · Member since 2024 · 18 posts · 3 votes
1y
@Paul Cijunelis This is great advice, I appreciate you letting me know!
1 Reply
Mary Hardy
Member since 2026 · 1 post · 1 vote
4mo
Quote from @Isaac Hanai:

Hi everyone,

I’m currently evaluating a multi-family property in St. Louis, Missouri, and based on the numbers, it seems like it could be a great fit for Section 8 tenants.

I’d love to hear from anyone with experience in the St. Louis market:

• How strong is the demand for Section 8 housing in the area?

• Are there any specific neighborhoods or zip codes to target or avoid?

• Any insights into working with the St. Louis Housing Authority or tips for streamlining the inspection and approval process?

I’m excited about the opportunity but want to make sure I’m fully prepared before moving forward. Any advice or lessons learned would be greatly appreciated!

Hey Isaac! Did you end up investing in Section 8 housing in the St. Louis market? Do you have any advice to pass along?
1 Reply
Nyron Isaac
Member since 2024 · 144 posts · 28 votes
3mo
Underwriting Section 8 multi-family in St. Louis is an exceptional yield play, but you must completely throw out macro neighborhood metrics and focus on a strict block-by-block analysis. Demand for the voucher program is massive, and by tracking Small Area Fair Market Rents (SAFMRs), zip codes like 63116 and 63139 allow you to secure premium federally backed rents that often outpace the local cash market.
Your biggest operational hurdle will be the administrative friction between the St. Louis Housing Authority (SLHA - City) and the Housing Authority of St. Louis County (HASLC - County). County operations are generally more digitalized, whereas City files face inspection delays. Budget a mandatory 45-to-60-day vacancy hold inside your model for every new lease-up to handle the bureaucratic lag before the first HAP contract check drops.
Lastly, protect your capital stack against St. Louis historic CapEx traps. These legacy brick multi-families are prone to main clay sewer line collapses and expensive tuckpointing deterioration. Pay for a forensic sewer scope and a structural masonry inspection during your due diligence window. Passing a clean pre-HQS check yourself before the city inspector arrives ensures your units pass on turn one, keeping your capital velocity moving cleanly.
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