Location: Montgomery County, IL | Metro: Macoupin County, 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 | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $102,580 | 0.91% | C |
| 3BR | $1,110 | $154,664 | 0.72% | D |
| 4BR | $1,290 | $250,478 | 0.52% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 62056 in Litchfield, IL, reveals a unique blend of characteristics that influence both yield and stability for real estate investments.
On the yield axis, the Federal Market Rent (FMR) for ZIP 62056 stands at $810 for fiscal year 2024, while the market rent is currently $691. This indicates a potential rental income gap where properties could be rented above the local market rate, leveraging the higher FMR. Additionally, the median home value in this area is $121,114, which suggests a relatively affordable market entry point for investors looking to maximize returns through rental income. The disparity between the FMR and market rent, combined with the lower home values, points towards a higher yield potential.
Regarding stability, ZIP 62056 shows a moderate level of tenant turnover and income consistency. With 28.7% of the population being renters, there is a significant but not overwhelming reliance on rental housing. The lack of data on days on market (DOM) makes it challenging to assess the speed of property turnover, which is a key indicator of stability. However, the median household income of $62,643 provides a stable economic base for tenants, supporting consistent rental payments.
Based on these figures, ZIP 62056 leans toward being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the potential for higher yields exists due to the discrepancy between FMR and market rent, the stability provided by a moderate percentage of renters and a solid median income supports a more sustainable investment strategy. The absence of day DOM data slightly reduces confidence in the turnover rate but does not significantly impact the overall assessment given the other available metrics.
To summarize, with a strong rental income opportunity ($810 FMR vs $691 market rent) and a stable economic foundation ($62,643 median income), ZIP 62056 offers a balanced environment for landlords and small-portfolio investors seeking reliable cash flow without the risks associated with highly volatile markets.
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.