Location: Macoupin County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 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 Section 8 cap-rate analysis for ZIP code 62009 provides valuable insights into the potential rental income and property values for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 62009 for fiscal year 2024 is set at $940 per month. When annualized, this translates to an annual rent of $11,280. In contrast, the market rent for a similar property, according to the Census ACS, is $813 per month, or $9,756 annually.
To determine the gross yield, we use the median home value of $70,450. For the FMR scenario, the gross yield is calculated as follows:
The implied gross-yield for the Section 8 scenario is higher at 15.99%, compared to the market rent gross-yield of 13.85%. However, it's important to consider that only 29.0% of the population in ZIP 62009 are renters, which could impact the demand for rental properties. Additionally, the N/A-day DOM (Days on Market) suggests there might be issues with vacancy rates or the speed at which units are rented out, though specific data is unavailable.
Given these factors, while the Section 8 gross-yield appears more favorable, the lower renter density and potential vacancy concerns make the market rent gross-yield more realistic. Landlords should weigh these figures carefully, considering the stability and predictability of Section 8 payments versus the potential for higher market rents, albeit with greater variability and risk.
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.