Location: Macoupin County, IL | Metro: St. Louis, MO-IL HUD Metro FMR Area
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 | $1,030 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,060 | $66,293 | 1.6% | A+ |
| 2BR | $1,300 | $93,217 | 1.39% | A |
| 3BR | $1,670 | $149,574 | 1.12% | B |
| 4BR | $1,930 | $212,260 | 0.91% | C |
| 5BR | $2,239 | $301,458 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 62002, which includes Alton, IL, Madison County, and Macoupin County, is currently favorable for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1,120 for the fiscal year 2024. This figure is higher than the market rent, as indicated by the Zillow Observed Rent Index (ZORI), which stands at $1,070. This means that landlords who accept Section 8 vouchers can expect to cashflow positively, even with units priced at the FMR.
The median home value in the ZIP code is $116,972, leading to a rent-to-price ratio of approximately 0.96%. This suggests that rental income is relatively low compared to the cost of owning a home, but it also indicates that buying homes in this area might be a good investment due to their affordability.
The rental market is quite active, with a median Days on Market (DOM) of 23 days, indicating quick turnover for listings. Additionally, the price-cut share of 0.2% shows that rental properties are generally listed at appropriate values, without the need for significant reductions to attract tenants.
In conclusion, the strongest investor angle in ZIP code 62002 is cashflow. Landlords can benefit from accepting Section 8 vouchers, as the HUD FMR exceeds the market rent, ensuring positive cashflow for most units. Stability is also present given the low price-cut share, and while appreciation may not be as strong, the combination of cashflow and stability makes this a solid investment opportunity.
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.