Location: Randolph County, IL | Metro: Randolph County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 62241 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area as of fiscal year 2026 is set at $930, while the Census American Community Survey (ACS) indicates that the average market rent stands at $850. This creates a gap of $80, which represents approximately an 8.6% difference between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to maximize their yields. By accepting Section 8 voucher tenants, they can charge closer to the FMR rate of $930, thereby increasing their rental income above what the typical market would offer. This makes it a favorable strategy for those looking to boost their returns on investment properties in this ZIP code.
The context of the area is also crucial for understanding this opportunity. With only 9.4% of residents being renters, the demand for rental properties is relatively low compared to areas with higher percentages of renters. However, the median home value of $174,321 and the median income of $83,438 suggest that homeownership is accessible but not necessarily affordable for all, creating a niche for rental properties, especially those that cater to voucher holders.
While accepting Section 8 tenants can be a lucrative move due to the higher FMR rates, there are considerations regarding the cost of housing these tenants below open-market rates. Landlords must balance the benefits of higher rents against potential administrative burdens and the lower turnover rates often associated with subsidized housing. Nevertheless, the financial advantage of receiving $930 per month through the voucher program versus the typical $850 market rent makes this ZIP code particularly attractive for those willing to navigate the nuances of working with Section 8 vouchers.
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.