Location: Decatur, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 61830 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $930, while the Census ACS data indicates that the market rent stands at $1,310. This represents a difference of $380, or approximately 40.9%, between what landlords can charge voucher tenants and the open-market rental rate.
Given that the FMR is lower than the market rent, it becomes evident that landlords who accept Section 8 vouchers will be renting their properties below the prevailing market rates. This scenario can be financially challenging for landlords, especially when considering the maintenance costs and potential vacancy periods that come with managing rental properties. Accepting voucher tenants means accepting a lower rental income compared to what could be earned in the open market.
In ZIP 61830, where 21.2% of residents are renters, the median home value is $174,756 and the median income is $67,232. These figures suggest that while the area is not dominated by renters, there is still a notable segment of the population relying on affordable housing options. Landlords must weigh the benefits of stable tenancy provided by voucher holders against the reduced rental income. Additionally, the lower median income indicates that many residents might find it difficult to afford the higher market rents without assistance, making the acceptance of Section 8 vouchers a necessity for maintaining occupancy levels.
To put this into perspective, if a landlord has a property that could potentially rent for $1,310 on the open market but opts to accept a Section 8 tenant paying $930, they are foregoing nearly 30% of the potential rental income. This cost must be considered alongside the overall financial health of the property and the landlord's investment strategy. For small-portfolio investors, this decision could significantly impact their cash flow and return on investment.
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.