Location: Edgar County, IL | Metro: Edgar County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The ZIP code 61940 presents an interesting scenario for both renters and landlords. The median income for households in this area stands at $55,938. When compared against the market rate rent of $743 per month, it becomes evident that the financial burden on renters is significant. To put this into perspective, if we consider a common rule of thumb where rent should not exceed 30% of one’s income, the monthly rent would ideally be around $1,378.20 for a household earning the median income. However, the actual market rate of $743 suggests that renters might be stretching their budgets to cover living expenses.
Further complicating matters is the comparison between the market rate and the Fair Market Rent (FMR) standard set by the federal government for voucher payments. For fiscal year 2026, the FMR for this metro area is $1,040. This means that the federal subsidy offered through Section 8 vouchers is higher than the current market rate, indicating a potential advantage for landlords who accept vouchers. The disparity between the market rate ($743) and the FMR ($1,040) highlights a substantial affordability gap for typical renters in this area.
In ZIP 61940, with a population of 259 and 41.0% of residents being renters, the competition among landlords is relatively low. Given the limited number of residents, landlords have a smaller pool of potential tenants to draw from. Accepting Section 8 vouchers could help fill vacancies and ensure a steady, government-backed rental income. However, the decision to accept vouchers should also take into account the administrative requirements and potential restrictions that come with participating in the program.
The takeaway for landlords considering their strategy in ZIP 61940 is that accepting Section 8 vouchers could provide a reliable source of income, especially given the higher subsidy amount compared to the local market rate. This approach can help attract tenants who might otherwise struggle to afford housing at market rates. Conversely, those focusing on cash-paying tenants may find themselves in a more competitive environment, with fewer options available to them. Landlords should weigh these factors carefully when deciding on their rental strategy.
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.