Location: Greene County, IL | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The investment landscape in ZIP 62063 for Section 8 landlords presents several challenges that need to be carefully considered. Tenant turnover is a significant risk, especially when comparing the market rent of $636 to the Fair Market Rent (FMR) of $910 for fiscal year 2024. This disparity indicates that tenants might be attracted to higher rents outside of the Section 8 program, leading to increased turnover rates. Landlords must prepare for frequent tenant changes and the associated costs of re-leasing properties.
Vacancy exposure is another critical factor. The Days on Market (DOM) data is currently unavailable, which suggests that landlords may face prolonged periods of vacancy. This can lead to financial strain due to the lack of rental income during these times. Additionally, the typical home value in ZIP 62063 is $164,105, while the median household income is $63,295. These figures highlight the potential for deferred maintenance issues, as lower-income households may struggle to afford necessary repairs and upkeep, placing the burden on the landlord.
However, these risks are somewhat mitigated by the high renter share of 3.8%. In areas with a high concentration of renters, there tends to be a robust demand for Section 8 vouchers, ensuring a steady pool of qualified tenants. This demand can help stabilize occupancy rates and reduce the likelihood of extended vacancies.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 62063 makes it a moderate risk for first-time Section 8 landlords. The strong tenant demand provides a counterbalance to the potential difficulties, offering a reasonable opportunity for successful property management under the Section 8 program.
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.