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 | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $100,812 | 0.92% | C |
| 3BR | $1,130 | $149,925 | 0.75% | D |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 62069, Illinois, for Section 8 investment must follow a structured decision-making process. The first step involves assessing whether the Fair Market Rent (FMR) of $920 can cover the debt service on a property valued at $102,841.
If the answer is yes: Proceed to the next question. This indicates that the rental income is sufficient to meet financial obligations associated with the property, such as mortgage payments and maintenance costs.
If the answer is no: Do not proceed with the purchase. A property where the FMR does not cover debt service would result in financial losses over time.
The second question is whether the market rent of $732 is above, at, or below the FMR of $920. This comparison helps determine if there's potential for higher returns or if the property is priced competitively.
If market rent is below FMR: There is an opportunity to increase rental income without exceeding the maximum allowed under Section 8 guidelines. This scenario suggests a positive outlook for profitability.
If market rent is equal to FMR: The property is likely to be rented out at the maximum allowable rate, which means steady but not exceptionally high returns. It still meets the requirements for Section 8 eligibility.
If market rent is above FMR: Consider the possibility of renting to non-Section 8 tenants for higher income. However, this might limit your tenant pool to those who qualify for Section 8.
The third and final question assesses the demand for rental properties. In ZIP 62069, 20.6% of residents are renters, and the average number of days on the market (DOM) is not available. These factors influence the likelihood of quickly finding and retaining tenants.
If there is sufficient demand: The 20.6% of renters suggests a moderate market presence. Without a specific DOM figure, it's challenging to gauge how quickly units will fill. However, the presence of renters alone is a positive sign. Landlords should also consider the local economic conditions and employment rates to ensure stability.
If there isn't enough demand: The lack of a DOM figure makes it difficult to quantify demand accurately. However, a lower percentage of renters could indicate less interest in the area, potentially leading to longer vacancy periods and reduced income.
In conclusion, a landlord should buy in ZIP 62069 if the FMR covers debt service, the market rent is below or equal to FMR, and there is a reasonable level of demand. With the given data, the FMR of $920 is sufficient to cover debt service on a $102,841 property, and the market rent being below the FMR presents an opportunity for increased profitability. The 20.6% of renters signals moderate demand, though the absence of a DOM figure requires further investigation into local economic factors.
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.