Location: Montgomery County, IL | Metro: Montgomery 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 | $750 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $87,150 | 1.15% | B |
| 3BR | $1,190 | $154,234 | 0.77% | D |
| 4BR | $1,370 | $214,201 | 0.64% | D |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 62049 in Hillsboro, IL, presents several challenges that potential landlords must consider. Firstly, tenant turnover is a significant risk due to the disparity between the market rent of $731 and the Fair Market Rent (FMR) of $1,020 for FY 2026 in the metro area. This difference suggests that tenants might seek higher-rent properties outside the Section 8 program, leading to increased turnover rates.
Vacancy exposure is another concern. The days on market (DOM) data is currently unavailable, which makes it difficult to predict how long a property might remain vacant between tenancies. Given the economic conditions in the area, with a typical home value of $130,689 and a median income of $55,446, there is a risk of deferred maintenance. Landlords may find themselves under financial pressure to maintain properties to meet housing quality standards without adequate funds from rental income.
However, these risks are offset by the high concentration of renters in the area, with 20.6% of residents being renters. High renter density typically correlates with greater demand for Section 8 vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. Despite the initial hurdles, the robust demand for subsidized housing can mitigate some of the financial risks associated with maintaining and renting out properties.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.