Get a real estate proforma tailored to St. Louis, MO

All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.

Thinking of buying in St. Louis, Missouri? Get our financial spreadsheet tailored to the city.

If you're buying and renting out residential property in St. Louis, a tailored real estate spreadsheet is essential.

St. Louis's market is unique, with its historic neighborhoods, diverse property values, and specific rental trends. A customized spreadsheet like the one we have built lets you factor in local rent control laws, seasonal market changes, and the economic impact of major institutions like Washington University and the healthcare sector.

This means you get precise projections for rental income and expenses, ensuring you make smart investment decisions and maximize your returns in a market known for its affordability and growth potential.

Our spreadsheet includes local data like neighborhood appreciation rates, typical vacancy periods, and property tax differences. It accounts for city planning initiatives and infrastructure projects, such as the revitalization of the Delmar Loop and the expansion of the Cortex Innovation Community, which impact property values and rental demand.

Don’t settle for generic real estate spreadsheets and risk lower returns. Use a tool designed for St. Louis to make better investments and ultimately, better money.

Thinking of buying in St. Louis, Missouri?

We have a real estate spreadsheet fully tailored to this market. Get it now.

DOWNLOAD

How does this real estate spreadsheet for St. Louis, Missouri works?

If you're looking to buy and rent out residential property in St. Louis, Missouri, our spreadsheet is the ultimate tool for you. It’s designed with simplicity and effectiveness in mind, making it incredibly user-friendly even if you’re not a finance expert.

Imagine having all the crucial real estate metrics like NOI (Net Operating Income), LTV (Loan-to-Value), cap rate, and net yield at your fingertips. Our spreadsheet doesn’t just crunch these numbers for you; it explains everything in plain English, so you understand exactly what’s going on. This means you won't get bogged down by confusing financial jargon or complex calculations.

One of the standout features is that it's tailored specifically for the St. Louis market. We’ve pre-loaded it with all the latest market data—average and median sale prices, rental income, occupancy rates, and more. This means you can make informed decisions based on accurate, up-to-date information without needing to do additional research.

We understand that time is money. That’s why our tool is designed to be fast and straightforward. You can input your data quickly, and instantly see comprehensive results displayed clearly on a user-friendly dashboard. The visual aids and charts make it easy to grasp your investment's performance at a glance.

Our tool also includes a scenario analysis feature. You can tweak parameters like interest rates, rental income, and operational costs to see how different scenarios—best, worst, and most likely cases—affect your investment. This helps you anticipate potential risks and identify opportunities, giving you a solid foundation for making smart investment choices.

If you’re worried about your computer skills or getting stuck, don't be. Our team is available 24/7 to help you. Plus, the guided inputs ensure that every step is easy to follow. We’ve tested this tool rigorously with beta testers and addressed all the common issues, so you get a seamless and frustration-free experience.

What metrics and data will I get?

Vacancy rates in St. Louis

Let's talk about the vacancy rate.

This is the percentage of all rental units that are not currently occupied. It's a crucial metric because it tells you how easy or difficult it might be to rent out your property.

If the vacancy rate is high, it means a lot of units are sitting empty. This could be a red flag because it suggests there's less demand for rentals, or too much supply, which can lead to lower rental income. On the other hand, a low vacancy rate means most units are rented out, indicating strong demand and the potential for stable rental income.

In St. Louis, the average vacancy rate tends to hover around 7-9%.

However, this can vary significantly depending on the neighborhood of St. Louis and type of property. For example, areas like Central West End or Clayton, known for their upscale amenities and proximity to major employers, usually have lower vacancy rates, sometimes even below 6%. In contrast, neighborhoods farther from the city center, like North City, might see higher rates, closer to 10% or more.

Knowing the latest vacancy rate helps you make smarter investment decisions, that’s why it’s already included in our spreadsheet tailored to St. Louis.

If you're planning to buy a rental property, a low vacancy rate can suggest a steady stream of tenants and more consistent rental income. Conversely, if the rate is high, you might face challenges in keeping your property occupied, which can impact your overall return on investment.

When you're putting together your finance real estate spreadsheet for a potential property, plug in the local vacancy rate to estimate your potential rental income more accurately.

For example, if you're looking at a property in Central West End with a low vacancy rate, you might project a higher and more reliable rental income. But if you're considering a property in a neighborhood with a higher vacancy rate, you might need to account for periods when the unit could be empty, which can affect your cash flow projections.

99% of successful investors meticulously planned their investments!

Don’t make costly mistakes with your next property in St. Louis. Make sure you have all the necessary information and data before making a decision.

DOWNLOAD

Housing prices in St. Louis

Housing prices - but you probably know it already - are simply the amount of money it costs to buy a property.

This metric is fundamental because it directly impacts how much you'll need to invest upfront and influences your potential return on investment.

In St. Louis, housing prices are relatively more affordable compared to many other major cities.

As of recent trends, the average price for a residential property in St. Louis hovers around $200,000 to $250,000. However, this can vary significantly based on the neighborhood and type of property.

For instance, a single-family home in the Central West End, a vibrant neighborhood known for its historic architecture and cultural attractions, can easily go for over $400,000. Meanwhile, a similar-sized home in a more affordable area like Dutchtown might be priced around $150,000.

Understanding the latest market value of housing prices helps you make a more informed investment decision. If you're buying in a neighborhood where prices are increasing, it might suggest a good investment opportunity as property values continue to rise.

Conversely, if you're looking at an area where prices are stagnating or falling, you might be able to negotiate a better deal upfront but face potential challenges in future appreciation.

When creating your financial projections with our real estate spreadsheet for St. Louis, if you don’t know how much you will pay, use current housing prices to estimate your initial investment costs accurately. This includes not just the purchase price but also additional expenses like closing costs, renovations, and ongoing maintenance.

If you're looking at a property in a high-demand area with escalating prices, factor in potential appreciation when projecting future value. For a property in a more stable or declining market, you might want to be more conservative in your estimates.

Housing prices also affect your mortgage calculations. Higher prices mean larger loans and higher monthly payments. Ensure your rental income projections can cover these costs comfortably. For example, if you're buying a $250,000 property in the Tower Grove South neighborhood, calculate whether the rental income in that area will adequately cover your mortgage, taxes, and other expenses.

Rental prices in St. Louis

Rental prices are the amount tenants pay to live in your property.

This metric is critical because it determines your rental income and, consequently, your cash flow and return on investment in St. Louis.

In St. Louis, rental prices are more affordable compared to many other major cities. The average rent for a one-bedroom apartment typically ranges from $900 to $1,200 per month.

However, this varies significantly by neighborhood and property type. For instance, a luxury apartment in the Central West End or Clayton could rent for upwards of $1,800 per month. In contrast, a similar-sized apartment in a more suburban area like Florissant might go for around $700 to $900 per month.

Knowing the latest rental prices is crucial for making a better investment decision. If rental prices are high and rising, it can indicate strong demand, suggesting that you could achieve higher rental income and a better return on your investment.

Conversely, if rental prices are stagnating or falling, it might be a sign of decreased demand or an oversupply of rental units, which can impact your income potential.

By using the market average rental price that we give you our real estate spreadsheet for St. Louis, you ground your income estimates in reality. This figure gives you a realistic starting point.

The market average allows you to compare your property’s potential rental income against the broader market. If your projected rent is significantly above or below the market average, it prompts you to investigate why. Are you offering more amenities, or is your property in a less desirable location? This comparison helps ensure your projections are in line with reality.

Don't lose money on your next property in St. Louis!

Unprepared first-time buyers often end up losing money. Invest only after reviewing all the performance metrics. Get our spreadsheet tailored to St. Louis, Missouri.

DOWNLOAD

Property appreciation rates in St. Louis

Property appreciation rates show how much the value of a property increases over time.

It's a percentage that tells you how much more (or less) your property is worth compared to a previous time, usually year-over-year. For instance, if a property was worth $200,000 last year and is now worth $220,000, the appreciation rate is 10%.

In St. Louis, the average property appreciation rate typically ranges from 3% to 6% annually.

However, this can vary widely based on several factors.

For example, properties in highly desirable neighborhoods like Central West End often see higher appreciation rates, sometimes over 7%, due to their historic charm, vibrant community, and proximity to amenities like Forest Park and top-notch dining. On the other hand, areas that are still developing or facing economic challenges, such as parts of North St. Louis, might see lower rates, around 2% to 4%.

Knowing the latest property appreciation rates is crucial, that’s why we have it included in our real estate spreadsheet for St. Louis. If you see that appreciation rates are high in a particular area, it might be a good signal that buying property there could yield a higher return over time.

Conversely, if the rates are low, you might reconsider or dig deeper to understand why. High appreciation rates suggest a strong, growing market, meaning you could expect your property value to increase significantly, adding to your overall investment returns.

Imagine you are comparing two properties: one in the bustling Central West End and another in a less developed area like Baden. The Central West End property might have an appreciation rate of 8%, while the Baden property sits at 3%. This difference will significantly affect your long-term gains.

By incorporating these appreciation rates into your financial calculations, you can predict more accurately how much equity you'll build over time. This helps you decide which property will give you the best bang for your buck, ensuring that your investment grows healthily.

Average ROI in St. Louis

Maybe the most important one!

Return on Investment (ROI) is the percentage that shows how much profit you make on your investment relative to the amount you spent. In real estate, it includes your rental income, minus expenses like mortgage, property taxes, and maintenance, compared to your initial investment.

In St. Louis, an average ROI for rental properties ranges from 5% to 9%.

The city's more affordable property prices mean that ROI can be higher compared to other cities, but properties in areas with high rental demand, like Central West End or Soulard, can push the ROI closer to 9%. These neighborhoods attract a steady stream of tenants, including young professionals and students, willing to pay competitive rents, increasing your rental income significantly.

For example, let's say you invest $300,000 in a townhouse in Central West End. If you can charge $2,500 per month in rent, your annual rental income is $30,000.

After deducting expenses like mortgage payments, property management fees, and maintenance, your net income might be around $15,000. This would give you an ROI of 5%, which is on the lower end, but this is where appreciation and long-term gains come into play.

Knowing the latest ROI metrics in St. Louis is vital for making a sound investment decision. No worries, you will obviously get it in our real estate spreadsheet for St. Louis.

If the current ROI in a specific neighborhood is higher, say 9%, it signals that the area is profitable and likely in high demand.

Conversely, if you find an ROI below 5%, it might indicate higher expenses or lower rental income potential, suggesting you should either negotiate a better purchase price or look for properties elsewhere.

Consider two properties: one in a rapidly developing neighborhood like The Grove and another in a well-established area like Lafayette Square. The Grove property might have a lower initial ROI due to higher risks and less stable rental income.

In contrast, Lafayette Square, with its high demand and stable rental market, could offer a more predictable and higher ROI. These differences will influence your financial strategy and cash flow projections significantly.

How much cash flow can you generate in St. Louis?

Get a clear view of your next investment, with all the metrics explained and reviewed accurately.

DOWNLOAD

Average days on market in St. Louis

The number of days a property stays on the market (DOM) indicates how quickly properties are selling in a particular area.

It’s a key metric for understanding the market's temperature: a lower DOM means properties are selling quickly, indicating high demand, while a higher DOM suggests a slower market with less demand.

In St. Louis, the average number of days a property stays on the market varies but typically ranges from 40 to 80 days.

In sought-after neighborhoods like Central West End or Clayton, properties often sell within 40 days due to high demand and desirable amenities. Conversely, in areas like Dutchtown, where demand might be slightly lower, the DOM can stretch to 80 days or more.

Knowing the current DOM in St. Louis is crucial for making informed investment decisions - that’s why you will find it in our real estate spreadsheet for St. Louis. A lower DOM means you can expect quicker sales, which is beneficial if you need to sell the property in the future.

It also indicates a competitive market, where buying quickly might be necessary to secure a good property.

On the other hand, a higher DOM suggests you have more time to negotiate and might find better deals.

For example, if you’re looking at a property in Lafayette Square with a DOM of 35 days, it indicates strong buyer interest and a fast-moving market. This can be a sign of a healthy investment environment where properties retain their value.

On the other hand, a property in the Bevo Mill neighborhood with a DOM of 85 days might suggest less urgency and more room for negotiation on price.

Average rental yields in St. Louis

Rental yield measures the annual rental income you earn from a property as a percentage of its purchase price.

It’s a straightforward way to understand the profitability of a rental property.

To calculate it, you divide the annual rental income by the property’s purchase price and then multiply by 100.

In St. Louis, the average rental yield typically ranges between 7% and 10%. This range can vary depending on the neighborhood and property type. For instance, properties in high-demand areas like Central West End or Clayton might offer yields around 8% to 10% due to higher rental rates. On the other hand, properties in outer neighborhoods or areas with less demand might yield closer to 7%.

For example, if you buy a property in Central West End for $300,000 and charge $2,500 per month in rent, your annual rental income would be $30,000. Dividing this by the purchase price and multiplying by 100 gives you a rental yield of 10%, which is strong for St. Louis.

Contrast this with a property in a less central neighborhood where the purchase price is also $300,000, but the monthly rent is only $1,750. The annual income of $21,000 results in a rental yield of 7%.

Knowing the current rental yields in St. Louis is crucial for making an informed investment decision. We break it down nicely in our real estate spreadsheet for St. Louis.

A higher rental yield indicates a better return on your investment from rental income alone, making it a more attractive purchase if you’re looking to maximize cash flow.

On the flip side, a lower rental yield might suggest that the property is overpriced relative to the income it can generate, or that the rental demand in that area is weaker.

Imagine you're deciding between two properties: one in a bustling area like Downtown St. Louis with a rental yield of 9%, and another in a quieter, residential neighborhood with a yield of 7%. The higher yield in Downtown St. Louis means you’ll get more rental income relative to your investment, which is a strong indicator of profitability.

This data helps you ensure your investment is financially sound and that you’re not overpaying for a property that won’t generate enough rental income.

Thinking of buying in St. Louis, Missouri?

We have a real estate spreadsheet fully tailored to this market. Get it now.

DOWNLOAD

What are the unique characteristics of the housing market in St. Louis, Missouri?

What are the current trends?

Our team has conducted in-depth research, and here’s a summary table of the nuanced trends in St. Louis’s housing market and how they present opportunities for buying and renting out properties.

What are the rent control regulations and zoning laws in St. Louis?

When you're diving into the St. Louis housing market, you're stepping into a unique and complex landscape shaped by specific regulations, zoning laws, and local rent control policies.

Knowing these regulations will help you reduce the risk of your property investment in St. Louis.

Here is a quick summary list we have made to help you.

• Zoning Laws
  • A (Single-Family Residential) Districts
    • Primarily single-family homes
    • Some small multi-family units allowed (typically 2-4 units)
    • Restrictions on building height and lot coverage
    • Specific design standards to preserve neighborhood character
  • B (Two-Family Residential) Districts
    • Higher-density housing options
    • Includes multi-family buildings, such as duplexes and small apartment buildings
    • More flexible height and density regulations
    • Encourages mixed-use developments with residential and commercial spaces
  • General Zoning Considerations
    • Zoning dictates what can be built and how properties can be used
    • Variances and conditional use permits may be required for certain developments
    • Zoning maps and detailed district regulations available from the St. Louis Planning and Urban Design Agency
• Rent Control
  • Applicability
    • Applies to most residential buildings constructed before a certain date
    • Excludes single-family homes and condos if individually owned and rented
  • Annual Rent Increases
    • Limited to a percentage increase tied to the Consumer Price Index (CPI)
    • Typically around 2-3% per year
    • Rent Board publishes allowable increase each year
  • Eviction Protections
    • Just cause eviction requirements
    • Includes reasons like non-payment of rent, lease violations, and owner move-in
    • Strict procedures and notice requirements for evictions
  • Tenant Rights and Resources
    • Tenants have the right to petition the Rent Board for rent reductions or habitability issues
    • Various tenant advocacy organizations provide support and legal advice
• Ellis Act
  • Landlord Rights
    • Allows landlords to evict tenants and remove properties from the rental market
    • Often used for converting rental units to other uses, like condos or owner-occupied homes
  • Tenant Protections
    • Requires a minimum 120-day notice for tenants
    • Seniors (62+) and disabled tenants receive a one-year notice
    • Relocation assistance payments required for displaced tenants
  • Regulatory Oversight
    • St. Louis implements measures to curb Ellis Act abuses
    • Regular monitoring and reporting by the Rent Board
• Short-term Rentals
  • Registration and Compliance
    • Must register with the Office of Short-Term Rentals
    • Annual registration fee required
    • Must adhere to local short-term rental laws
  • Rental Limits
    • Limit of 90 days per year for non-owner-occupied rentals
    • Unlimited short-term rentals allowed if owner resides in the unit during the rental period
  • Regulatory Enforcement
    • Regular audits and inspections by city officials
    • Significant fines for non-compliance
    • Requirement to maintain records of rental activity
• Proposition I
  • Impact on Housing Construction
    • Passed to slow down market-rate housing construction
    • Imposes additional hurdles and requirements for developers
  • Goals and Intentions
    • Aims to balance new developments with affordability and community impact
    • Encourages more affordable housing projects
  • Development Process
    • Requires additional review and community input for large projects
    • Increased requirements for affordable housing units within new developments
    • Stricter environmental and neighborhood impact assessments

What are the property tax rates in St. Louis?

The property tax rate in St. Louis, Missouri, has its own unique intricacies, but let's break it down for you.

First, the base property tax rate in St. Louis is determined by the city's tax levy, which is currently around 1.25% of the assessed value of your property. This rate is set by the city and can vary slightly depending on the specific location within St. Louis.

The assessed value of your property is typically based on a percentage of its market value. In Missouri, residential properties are assessed at 19% of their market value. So, if your property is valued at $200,000, the assessed value would be $38,000, and your base property tax would be 1.25% of that assessed value.

But don't stop there. St. Louis adds additional taxes to fund various local services and infrastructure projects. These include taxes for school districts, libraries, and other municipal bonds. These additional taxes typically add up to around 1.0-1.2% of the property's assessed value, bringing the total property tax rate closer to 2.25-2.45%.

It's crucial to understand how these extra taxes can fluctuate.

Voters in St. Louis often approve new measures that can slightly increase your tax bill. For instance, bonds for school improvements or public safety initiatives can add to your annual property taxes. This means your tax rate isn't set in stone and can change based on local measures passed by the voters.

For investors, it's also important to consider that the assessed value of your property can be reassessed every two years by the St. Louis County Assessor's Office. This reassessment can lead to an increase in your property's assessed value, which in turn increases your property tax bill. In a market where property values are rising, this can significantly impact your tax obligations over time.

Additionally, if you make significant improvements to your property, such as adding new units or substantial renovations, the property will be reassessed at a higher value, leading to higher taxes.

Therefore, while investing in property improvements can increase your rental income, it also means you'll need to account for a higher tax burden.

For more detailed information, you can visit the St. Louis Assessor's Office website.

Get our spreadsheet tailored to St. Louis, Missouri!

Our tool covers everything: NOI, COC, Cap Rate, Gross Yield, Net Yield, LTV, ROI, and numerous other metrics and charts.

DOWNLOAD