Location: Cumberland County, IL | Metro: Coles County, IL
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 | $650 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $95,546 | 0.97% | C |
| 3BR | $1,210 | $152,597 | 0.79% | D |
| 4BR | $1,390 | $215,340 | 0.65% | D |
U.S. Census Bureau data (2024)
In Mattoon, Illinois, the real estate landscape for ZIP code 61938 suggests a nuanced market dynamic that balances stability with limited growth potential. The median home value stands at $122,395, indicating an affordable market but also pointing towards a segment where price sensitivity among buyers is high. This is further underscored by the observation that 0.2% of listings have recently reduced their prices, a figure that, while low, signals that sellers are beginning to adjust their expectations in response to buyer behavior.
The median Days on Market (DOM) being listed as N/A can be interpreted as either a very efficient local market where homes sell quickly, or a less active market with fewer transactions. Given the context of median home values and slight price reductions, it's reasonable to infer that the market is somewhat stable but not necessarily robust in terms of sales velocity. This stability is likely to persist over the next 12-24 months, suggesting that landlords and small-portfolio investors should expect steady, rather than volatile, conditions.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $920, while the current market rent (ZORI) is at $860. This indicates a positive trend for rental income, with a potential increase in line with the FMR. Landlords should prepare for modest rent hikes, aligning with the expected rise in FMR, which could improve cash flow without significantly altering the affordability of housing in the area.
For long-term investors, the setup in ZIP 61938 implies a conservative appreciation thesis. With the median home value being relatively low and the slight indication of price adjustments, there is little evidence to suggest rapid appreciation. However, the market's stability and the modest projected increase in rental rates offer a solid foundation for maintaining property values and generating consistent returns. Investors should focus on properties that offer both rental income and the potential for gradual appreciation, aligning with broader economic trends and the local job market.
In summary, the data points to a market where pricing power remains in the hands of buyers and renters, but with opportunities for steady income generation through rentals. Long-term investors should look for properties that can withstand the test of time and benefit from gradual improvements in the local economy and rental market dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.