Location: Montgomery County, IL | Metro: Christian 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 | $800 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $120,052 | 1.06% | B |
U.S. Census Bureau data (2024)
In analyzing ZIP code 62075 for potential investment under the Section 8 program, several key concerns arise that need addressing based on the available data.
First, will the Fair Market Rent (FMR) of $1,030 for the metro area in fiscal year 2026 cover the mortgage on a home priced at $98,061? The FMR is an important benchmark but does not directly correlate with mortgage payments. To determine if it covers the mortgage, one must consider the interest rate and loan term. Assuming a 30-year fixed-rate mortgage with a current average rate of 5%, the monthly payment on a $98,061 home would be approximately $530. Thus, the FMR of $1,030 comfortably exceeds this amount, providing a cushion for maintenance and other costs. However, the actual mortgage payment could vary depending on down payment and credit score.
Second, is there sufficient renter demand at 20.8%? The percentage of renters in ZIP 62075 indicates moderate demand. While 20.8% may seem low, it translates into a significant number of potential tenants given the population size. For instance, if the total households are around 5,000, 20.8% represents roughly 1,040 rental units. This figure suggests a viable market for Section 8 properties, especially considering the steady income these programs provide. Yet, the data does not specify the exact number of households participating in Section 8, which would offer a clearer picture of demand.
Finally, will vouchers keep pace with the market rents of $909? The FMR of $1,030 is higher than the current market rent of $909, indicating that vouchers should adequately cover the cost of renting in this area. However, the long-term sustainability of this trend depends on future adjustments to voucher amounts and market rent increases. Current data does not project future changes in either metric, so caution is advised when forecasting long-term financial stability based solely on the present figures.
To conclude, while ZIP 62075 presents some challenges, the data suggests that the FMR is sufficient to cover mortgage payments and that there is a reasonable level of tenant demand. Vouchers appear to align well with current market rents, though ongoing monitoring of both voucher values and market conditions is essential to ensure continued profitability.
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.