Location: Macoupin County, IL | Metro: St. Louis, MO-IL HUD Metro FMR Area
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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $121,530 | 0.88% | C |
| 3BR | $1,310 | $188,419 | 0.7% | D |
| 4BR | $1,630 | $264,553 | 0.62% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 62088 does not align favorably for landlords. The HUD Fair Market Rent (FMR) for the area is set at $1010 per month for fiscal year 2024. However, the actual market rent, as reported by the Census American Community Survey (ACS), stands at only $642 per month. This discrepancy means that landlords might struggle to cover costs and generate profit if they adhere strictly to the FMR guidelines.
Acquisition in ZIP 62088 is relatively affordable. The median home value is $163,881, which is lower than many metropolitan areas. While the days on market (DOM) and the percentage of homes that have been listed with a price cut (0.3%) suggest a stable market, the low DOM figure indicates that homes may sell quickly once they're priced right. Landlords can acquire properties here without the risk of overpaying or facing prolonged listings.
Tenant demand in ZIP 62088 is moderate. With a total population of 6,400, approximately 19.2% of residents are renters. This translates to roughly 1,228 potential tenants in the area. Given the modest size of the rental pool, landlords should be prepared for competition and ensure their properties meet local standards to attract and retain tenants.
Verdict: ZIP 62088 presents a mixed picture for real estate investment. While the acquisition cost is affordable and the market is stable, the disparity between HUD's FMR and the actual market rent poses a significant challenge. Landlords must carefully manage expenses and consider strategic pricing to remain profitable. Tenant demand is present but limited, necessitating a focus on property quality and maintenance to stand out in the local market.
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.