Location: Randolph County, IL | Metro: Randolph County, IL
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 | $680 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $151,297 | 0.81% | C |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 62233 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $940, while the Census ACS data indicates that the current market rent stands at $760. This means there is a $180 difference, or a 24% gap, between what landlords can charge through the Section 8 program and the prevailing market rate.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors should consider the benefits of accepting voucher tenants. By participating in the Section 8 program, landlords can secure a rental income that is higher than the current market rate. Given that only 20.0% of the residents in ZIP 62233 are renters, the competition for rental properties is relatively low, making it easier to attract voucher tenants who will pay the higher FMR rate.
The median home value in the area is $133,213, and the median income is $84,556. These figures suggest that the local economy can support higher rents, but the current market rent reflects a lower demand for rentals. Accepting Section 8 voucher tenants allows landlords to capitalize on the yield play, ensuring a steady stream of income at a rate above the current market level.
Moreover, the higher FMR rate helps offset the administrative costs associated with the Section 8 program. Landlords do not have to worry about collecting rent late or not at all, as the government covers the tenant's portion of the rent. This makes the Section 8 program an attractive option for investors looking to maximize their returns in ZIP 62233.
To summarize, the explicit gap of $180, or 24%, between the FMR and market rent in ZIP 62233 presents a clear opportunity for landlords to increase their rental yields. With the local rental market being less competitive due to the low percentage of renters, and the median income supporting higher rents, the Section 8 program offers a reliable way to achieve better financial outcomes.
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.