Location: Montgomery County, IL | Metro: St. Louis, MO-IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The median income in ZIP code 62086 stands at $65,000, which provides a baseline for understanding the financial capabilities of its residents. At a market rate of $533 (as per Census ACS), renting an apartment is feasible for many households, but it becomes significantly more challenging when considering the Fair Market Rent (FMR) standard set at $940 for zip FY 2024. This discrepancy highlights a substantial affordability gap for renters.
To put this into perspective, a household earning the median income would spend approximately 27% of their monthly income on the market-rate rent, which is manageable. However, if they were to pay the FMR of $940, this figure jumps to nearly 45% of their monthly income, placing a considerable strain on their finances. The fact that only 10.3% of the 1,318 population are renters suggests limited demand for rental properties, which could intensify competition among landlords.
The affordability gap means that landlords must carefully consider their pricing strategies to attract tenants. Offering market-rate rents can make units accessible to a broader range of potential renters, while higher rents aligned with the FMR may limit the pool of eligible tenants to those receiving housing vouchers or having higher incomes.
For landlords deciding between voucher and cash-pay strategies, the key takeaway is that voucher tenants provide a reliable source of income, albeit at a lower rate compared to market conditions. Vouchers ensure consistent payments at the FMR level, reducing the risk of non-payment. However, landlords should also be aware that the voucher payment standard is higher than the current market rate, potentially leading to higher costs for utilities and maintenance that may not be covered under the voucher agreement. Landlords might find a balance by offering competitive market rates and being open to voucher tenants to diversify their tenant base and manage occupancy levels effectively.
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.