Location: Washington County, IL | Metro: Perry County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 62268 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $970, while the Census American Community Survey (ACS) reports a market rent of $1,042. This creates a gap of $72, or approximately 7.6%, where landlords can either capitalize on higher yields or face challenges in maintaining profitability when housing voucher tenants.
Given that the FMR is lower than the market rent, landlords who choose to accept Section 8 vouchers will be renting their properties below the prevailing market rate. This scenario presents a cost consideration for landlords, as they must weigh the benefits of guaranteed rental income against the potential loss of revenue that could be earned by renting to non-voucher tenants at the full market rate. The difference of $72 per month might seem insignificant, but over time, it can affect the overall return on investment (ROI).
In ZIP 62268, only 12.5% of the population are renters, indicating a primarily owner-occupied area. The median home value is $180,944, suggesting that homeownership is a significant aspect of the local economy. With a median income of $95,833, many residents can afford to pay the higher market rents, making it even more critical for landlords to consider the financial implications of accepting Section 8 vouchers.
While the guaranteed payment from the government ensures steady cash flow, landlords must also factor in the administrative costs associated with managing Section 8 properties. These costs include background checks, credit screenings, and compliance with HUD regulations. Furthermore, the limited pool of renters in the area means that landlords may have fewer options for finding tenants willing to pay the higher market rates.
To summarize, the FMR of $970 is significantly below the market rent of $1,042, creating a yield challenge for landlords in ZIP 62268. Accepting Section 8 vouchers means forfeiting a portion of potential rental income, which could impact long-term investment returns. Landlords should carefully evaluate these factors before deciding to participate in the Section 8 program.
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.