Location: Montgomery County, IL | Metro: Montgomery County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
U.S. Census Bureau data (2024)
The median income in ZIP code 62094 stands at $60,644, which provides a baseline for assessing rental affordability. The market rate for rentals, according to Census ACS data, is $578. This figure represents a significant portion of the average household's budget, considering typical financial advice suggests housing costs should not exceed 30% of one’s income. In this context, a household earning the median income would allocate approximately 30% of their monthly earnings towards rent at the market rate.
However, the situation becomes more complex when comparing these numbers to the Federal Market Rent (FMR) standard of $920, which is set for metro areas in fiscal year 2026. This FMR is notably higher than the current market rate, indicating a substantial gap between what the government deems a fair rent and what the market currently offers. For households relying on Section 8 vouchers, the $920 FMR is the maximum amount that can be paid toward rent, which far exceeds the $578 market rate.
With only 19.7% of the 1,107 residents being renters, the competition among landlords for tenants is relatively low. This means that landlords have an opportunity to attract cash-paying tenants who might prefer lower rents, given the current market conditions. However, the presence of Section 8 voucher holders could increase demand for units priced closer to the FMR, potentially leading to a bifurcated rental market where both cash-paying and voucher-supported tenants coexist.
The takeaway for landlords considering whether to accept voucher tenants or focus on cash-paying ones is clear. Given the disparity between the market rate and the FMR, accepting Section 8 vouchers can provide a stable, guaranteed income stream, albeit at a higher rent rate. Landlords who choose to cater exclusively to cash-paying tenants will likely find it easier to fill vacancies due to the lower competition, but they must also be prepared to price their units below the FMR to remain attractive. Ultimately, the decision should hinge on the landlord's risk tolerance and the local demand dynamics for subsidized housing.
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.