Location: Macoupin County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The ZIP code 62085 is situated in a predominantly owner-occupied neighborhood with a relatively small population of 193 residents. Only 1.2% of the households in this area are renters, indicating a strong preference for homeownership among the local populace. The median household income stands at $70,000, suggesting a middle-class community where residents have disposable income beyond basic necessities.
Despite the low percentage of renters, the Federal Market Rent (FMR) for ZIP 62085 is set at $970 for the fiscal year 2024. This figure represents the maximum rental assistance payment standard for a given unit size and is based on the 40th percentile of gross rents plus utilities for all tenant-occupied units. However, specific data on the market rent for the area is not available, which means that the FMR might not accurately reflect the actual rental prices in the neighborhood.
Given the characteristics of ZIP 62085, it would be challenging for a hands-off voucher operator to find sufficient rental properties to manage. The low rental rate indicates that there are few rental units available, and the demand for Section 8 vouchers may not be high enough to support a passive investment strategy. On the other hand, a hands-on value-add buyer could potentially find opportunities to convert underutilized homes into rental properties that cater to lower-income families eligible for Section 8 assistance.
To succeed in this market, an investor should consider the unique challenges and opportunities presented by ZIP 62085. With a median income of $70,000, the potential for rental income is present, but the investor must be prepared to actively seek out and improve properties to make them attractive to voucher holders. Additionally, the investor should work closely with local housing authorities to understand the dynamics of the Section 8 program in the area and ensure compliance with all relevant regulations.
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.