Saint Louis City

Saint Louis City posts a rent-to-price ratio of 9.05%, which puts it firmly in cash-flow territory on paper. The median home price sits at $177,341 against a median rent of $1,337, and the gross yield implied by that ratio is one of the more attractive figures you'll find in Missouri. The cap rate comes in at 5.88%, which is respectable for an urban Midwestern market. The complication is at the levered level: at a 6.85% interest rate with a 20% down payment, the model produces a monthly mortgage of $930, estimated expenses of $468, and a cash flow of negative $61 per month, yielding a cash-on-cash return of -1.79%. That gap between a solid cap rate and negative cash-on-cash is a direct product of the current rate environment, not a broken market. Home price appreciation is modest at 0.78% year-over-year, and the appreciation score of 58 out of 100 confirms this is not a market you buy for price growth. The overall score of 70 and a national percentile rank of 85th out of 1,000 counties reflect a market that earns its place through yield potential, not momentum.

The investor this market suits most clearly is a cash-flow buyer willing to optimize the capital stack. At a 9.05% gross rent-to-price ratio, Saint Louis City offers room to manufacture positive cash flow through a larger down payment, seller financing, or a cash purchase, strategies that sidestep the rate drag entirely. An all-cash buyer at $177,341 earning $1,337 per month gross is working with a yield that supports real returns after expenses. The market also fits a value-add operator: a median price under $180,000 means acquisition costs are low enough that even moderate rent bumps from renovation can move the needle on returns. The affordability score of 80 and affordability index of 80 suggest the renter pool is price-sensitive, which is worth factoring into rent ceiling assumptions, but it also means demand for affordable rental housing remains structurally present. The appreciation buyer gets the least from this market, given the 0.78% YoY price growth and a 58 appreciation score.

The monthly combined tax and insurance figure of $208 is part of the $468 estimated expenses and warrants attention in your underwrite. The property tax rate used here is 0.97%, drawn from the state-average effective rate per Tax Foundation 2024 data, and that figure is flagged as normal. That said, Missouri assesses property differently across municipalities, and Saint Louis City as an independent city with its own taxing authority is precisely the kind of jurisdiction where the state average can diverge meaningfully from what you'll actually owe. Pull the county assessor's effective rate for any specific address before finalizing your numbers. The insurance component at 0.44% annualized adds $780 per year, which is modest, but Missouri sits in a hail and wind corridor that can push actual premiums above the modeled rate depending on property age and construction type.

The stability score of 50 is the data point that demands the most attention from an underwriting standpoint. Saint Louis City is an independent city, not a county, with a population of 298,018 and a median household income of $52,941. That income figure is below typical metro medians and implies a tenant base with limited financial cushion, which historically correlates with higher turnover and collection risk during economic stress. The market is also concentrated, meaning its rental demand is tied to the health of a single urban core rather than a diversified suburban or exurban base. Investors should underwrite conservatively on vacancy and factor in the management intensity that comes with lower-income urban rentals. The data here does not include vacancy rates, so no specific figure can be cited, but the 50 stability score should prompt stress-testing your cash flow at 10% and 15% vacancy before committing.

Against its neighbors, Saint Louis City's case is straightforward on price and yield. Butler County has a lower median price at $160,556 but a rent-to-price ratio of only 6.73%, well below Saint Louis City's 9.05%. Buchanan County comes in at $182,875 with a ratio of 5.79%, the weakest gross yield in the comparison set. Jefferson County prices at $281,743 with a ratio of 6.23%, meaning you're paying 59% more per door for less gross yield. Clinton and Maries counties lack rent data in the provided set, so a direct yield comparison isn't possible. On the numbers available, Saint Louis City is the clearest choice for an investor who wants the highest gross rent yield per dollar deployed in Missouri, and it beats every neighbor with available rent data by a material margin. Choose a neighbor over Saint Louis City if you prioritize price stability and tenant income quality over headline yield, or if your financing structure makes the urban management risk less attractive than a lower-yield, lower-friction suburban asset.