Location: Montgomery County, IL | Metro: Montgomery County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 62051 reveals a unique balance between yield potential and market stability, making it an intriguing option for both landlords and small-portfolio investors. The key figures to consider are the Fair Market Rent (FMR) of $1,140 for the metro area in fiscal year 2026, the market rent of $533, and the median home value of $130,294. Additionally, the rental market is characterized by a 10.5% share of renters, with household incomes averaging $64,360.
To evaluate the yield potential, we compare the FMR of $1,140 against the market rent of $533. This significant gap suggests that there is a substantial opportunity for higher rental yields if properties can be rented at or near the FMR. However, the actual market rent indicates that achieving such rents might be challenging due to the lower current market rates. For investors looking to leverage Section 8 programs, the potential exists to secure higher rents through government subsidies, which could bridge the gap between the FMR and the current market rates.
Regarding stability, the data points towards a less volatile but also less dynamic market. With only 10.5% of the population being renters, the demand for rental properties is relatively low, indicating a smaller pool of potential tenants. Moreover, the average income level of $64,360 suggests that the majority of residents are likely homeowners, further reducing the competition for rental units. The lack of data on days on market (DOM) makes it difficult to assess the speed at which rental properties can be filled, but given the lower rental rate compared to the FMR, it's reasonable to assume that finding tenants willing to pay market rent might take longer.
In conclusion, ZIP code 62051 presents a scenario where the yield potential is driven by the disparity between the FMR and the market rent, offering opportunities for those who can navigate the complexities of Section 8 housing. However, the stability aspect is somewhat compromised by the limited rental market presence and potentially longer periods to find suitable tenants. Therefore, this area leans more towards a moderate-stability, moderate-yield market, rather than a high-yield/low-stability flip-style market or a steady-cashflow zone.
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.