Location: Montgomery County, IL | Metro: Christian County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate scenario for ZIP code 62083 reveals some critical insights into potential investment opportunities for landlords and small-portfolio investors. Given the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $970 for fiscal year 2026 in the metro area, we can derive the gross yield based on the median home value. However, the median home value for ZIP 62083 is not available, making it challenging to calculate an exact gross yield. Additionally, the market rent for the area is also not available, further complicating the analysis.
To understand the implications, let's consider the scenario where the median home value is used to calculate the gross yield. Assuming a typical median home value for similar areas, we would use that figure to estimate the potential rental income relative to the property value. For instance, if we hypothetically set the median home value at $200,000 (for illustration purposes), the gross yield would be calculated as follows:
However, since the actual median home value and market rent are not provided, we cannot definitively state these figures. The lack of data on median home values and market rents makes it difficult to provide a precise cap rate calculation. Nonetheless, the 0.0% renter density indicates a very low proportion of residents renting homes, suggesting that relying solely on Section 8 subsidies might not be a viable strategy for maximizing returns in this area.
The days on market (DOM) being listed as N/A also presents a challenge. Typically, a high DOM would suggest a slower rental market, potentially leading to longer periods without income. Conversely, a low DOM would indicate a quicker turnover, which could be beneficial for rental income consistency. Without this information, it's hard to gauge the speed at which properties are rented out and how that impacts overall yields.
In conclusion, while the Section 8 FMR provides a clear rental income figure at $970 per month, the lack of median home value and market rent data prevents a comprehensive cap rate analysis. The hypothetical gross yield of 5.82% derived from a median home value of $200,000 serves as a baseline, but the reality of investing in ZIP 62083 remains uncertain due to the missing data points. Given the 0.0% renter density, it's evident that the area leans heavily towards homeownership, making Section 8 investments less attractive compared to regions with higher rental demand.
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.