Location: De Witt County, IL | Metro: Decatur, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 61756 is centered around the discrepancy between the Fair Market Rent (FMR) set at $910 for fiscal year 2024 and the actual market rent of $851 according to the Census American Community Survey (ACS). This gap stands at $59, representing a 6.9% difference in favor of FMR.
This situation makes ZIP 61756 a yield play for landlords and small-portfolio investors who can attract voucher tenants. The higher FMR means that landlords can potentially receive a subsidy rate above the prevailing market rent, thus increasing their rental income without having to charge more than the local market would bear. For instance, if a landlord charges $851, they will still receive $910 from the voucher program, leading to an additional $59 per month, or approximately $708 annually, for each Section 8 unit.
In the broader context of ZIP 61756, where 20.0% of residents are renters, the median home value is $158,311, and the median income is $86,375, the attractiveness of Section 8 vouchers becomes even clearer. Given the relatively low proportion of renters and the median income level, it's likely that many potential tenants would benefit from the housing voucher program. This ensures a stable and reliable source of income for landlords, as voucher payments are typically more consistent than those from non-subsidized tenants.
However, it's important to note the implications of renting below the market rate. While the FMR provides a buffer, landlords must be aware that they might be foregoing potential higher rents in a competitive market environment. In ZIP 61756, where the market rent is lower than the FMR, landlords should consider the overall economic conditions and the stability of the voucher program before making any investment decisions.
To summarize, the gap between FMR and market rent in ZIP 61756 presents an opportunity for landlords to leverage the Section 8 program to enhance their rental yields. With a 6.9% premium over market rates, the financial benefits are clear, especially when considering the broader economic profile of the area. This analysis is anchored in the specific context of the ZIP code, ensuring that the insights provided are relevant and actionable.
Data Sources: FMR data from HUD (2027). 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.