Location: Greene County, IL | Metro: Greene 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 | $700 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $150,335 | 0.82% | C |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 62016 reveals a stark contrast between the federal market rent (FMR) and the actual market rent. The annualized FMR for a 2-bedroom unit, set at $1,090 per month for fiscal year 2026, translates into an annual income of $13,080. Given the median home value in the area is $140,206, this yields a gross rental yield of approximately 9.3%. This calculation is based on the assumption that the property can be rented out at the FMR rate.
In contrast, the Census ACS reports the market rent for a 2-bedroom unit in ZIP 62016 at $776 per month. When annualized, this market rent figure amounts to $9,312 annually. With the same median home value of $140,206, the gross rental yield under market conditions drops significantly to about 6.6%.
The difference in these yields highlights the financial benefits of participating in the Section 8 program over relying solely on market rents. However, it's important to consider the local rental market dynamics. The renter density in ZIP 62016 stands at 27.0%, indicating a moderate level of demand for rental properties. The N/A-day DOM (days on market) suggests either a very efficient rental market or a lack of comprehensive data regarding how quickly rental units are typically leased in this area.
Given these factors, the 9.3% gross rental yield derived from the FMR appears more realistic for landlords willing to engage with the Section 8 program. This higher yield compensates for the administrative burden and potential risks associated with government programs. Meanwhile, the 6.6% yield reflects the typical returns one might expect from the broader rental market, without the additional support of Section 8 subsidies.
Landlords and small-portfolio investors should weigh the benefits of higher gross yields against the complexities of managing Section 8 properties. The choice between market rent and FMR depends largely on individual preferences and risk tolerance.
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.