Location: Shelby County, IL | Metro: Decatur, IL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $127,310 | 0.8% | C |
| 3BR | $1,400 | $171,561 | 0.82% | C |
U.S. Census Bureau data (2024)
The real estate market in Bethany, Illinois (ZIP 61914) presents a unique setup for both landlords and small-portfolio investors. With a median home value of $164,806, the area remains affordable compared to many other regions across the country. The fact that there is currently no percentage of listings being reduced signals a stable market, where sellers are maintaining their asking prices. This stability, combined with the unreported median days on market (DOM), suggests that the housing market in Bethany is neither overheated nor experiencing a significant downturn.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 61914 in fiscal year 2024 is set at $1,050, which is slightly higher than the current market rate of $1,002 as reported by the Census Bureau's American Community Survey (ACS). This indicates that there could be upward pressure on rents as the market adjusts to meet the FMR standards. Landlords and investors should prepare for potential rent increases, but they must also be cautious of the balance between rent levels and the affordability of homes in the area.
For long-term hold investors, the setup in Bethany implies a realistic appreciation thesis based on the current economic conditions and trends. Given the stable housing market and the slight increase in expected rental rates, it is reasonable to anticipate modest appreciation in property values over the next 12-24 months. However, the lack of specific percentages for reduced listings and median DOM means that any significant shifts in the market could affect this scenario. Investors should monitor local economic indicators, such as employment rates and income levels, to better understand the underlying drivers of property value changes.
Investors should also consider the broader context of the real estate market. While national trends often influence local markets, the specific dynamics of Bethany could lead to different outcomes. The combination of an affordable median home value and a balanced rental market provides a solid foundation for investment, particularly for those looking to capitalize on long-term growth rather than short-term gains.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.