Location: Shelby 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 | $680 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $124,818 | 0.78% | D |
| 3BR | $1,340 | $216,622 | 0.62% | D |
| 4BR | $1,620 | $288,529 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 61951, centered around Sullivan, IL, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $980, while the Census ACS data shows an average market rent of $825. This creates a gap of $155, which translates to approximately 16% difference between what landlords could charge under market conditions and what they would receive through the Section 8 program.
In this scenario where the FMR exceeds the market rent, landlords stand to benefit from accepting Section 8 tenants. By participating in the program, landlords can effectively increase their rental income above the local market rate. This makes ZIP 61951 a prime location for a yield play, especially given the current economic conditions in Sullivan. With a median home value of $194,022 and a median household income of $71,905, the disparity between FMR and market rent provides an opportunity for landlords to achieve higher returns without the risk associated with raising rents beyond what the local economy can bear.
However, it's important to note that accepting Section 8 tenants comes with its own set of considerations. While the FMR offers a higher rate than the current market rent, landlords must ensure that their properties meet the Housing Quality Standards (HQS) required by the program. Additionally, landlords should be prepared for the possibility of lower vacancy rates, as voucher holders often have fewer options compared to those paying market rates. Despite these factors, the financial advantage of receiving $980 per month through the Section 8 program, rather than the typical $825, makes this a compelling strategy for maximizing yield in ZIP 61951.
To put this into perspective, the ZIP code has a rental population of 21.8%, indicating a substantial number of potential tenants who might rely on assistance programs like Section 8. Given the favorable FMR compared to the local market rent, landlords can leverage this situation to their financial benefit, ensuring that their properties remain competitive and attractive to both voucher and non-voucher tenants alike.
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.