Location: Montgomery County, IL | Metro: Fayette County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 62080, located in Montgomery County, Illinois, reveals several key points that are crucial for both landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $990 for fiscal year 2026, which covers the entire metro scope. In comparison, the actual market rent based on Census ACS data is $768. This indicates that voucher tenants in this ZIP code will cashflow marginally at the HUD FMR, meaning landlords can expect a slight profit without having to seek premium units.
To further understand the investment potential, the median home value in the area is $144,024. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $768, the annual rent would be approximately $9,216. Dividing the annual rent by the median home value gives us a rent-to-price ratio of about 6.4%. This ratio suggests that rental income is modest relative to the cost of homeownership, indicating that the primary strength of the area lies in its rental market rather than in potential home appreciation.
The dynamics between renting and buying do not significantly impact the decision-making process for investors in this region, given the lack of available data on the median Days on Market (DOM) and the percentage of price cuts. However, the absence of these figures does not detract from the overall positive outlook for rental investments in ZIP 62080.
The strongest investor angle in this area is stability. The consistent demand for rental properties, supported by the HUD FMR, ensures a reliable source of income for landlords and small-portfolio investors. While cashflow is present, it is moderate, and the low median home value suggests limited potential for significant appreciation in property values. Therefore, stability should be the primary focus for investors looking to establish a long-term presence in the ZIP 62080 rental market.
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.