Location: Randolph County, IL | Metro: Jackson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 62272 reveals a significant gap between the Fair Market Rent (FMR) set at $930 for fiscal year 2024 and the actual market rent reported at $702 according to the latest Census ACS data. This discrepancy amounts to $228, or approximately 32.5%, indicating that the FMR exceeds the current market rent.
The higher FMR compared to the market rent means that landlords can potentially receive a higher rental income through the Section 8 program than they would from traditional market-rate tenants. Specifically, voucher tenants can provide an additional $228 per month, which translates into a more attractive yield for landlords. Given that only 28.9% of residents in this area are renters, the demand for rental properties is relatively low, making it advantageous for landlords to leverage the Section 8 program to ensure steady occupancy and income.
In ZIP 62272, the median home value stands at $95,872, while the median income is $50,938. These figures suggest that many residents may find it challenging to afford homeownership, further increasing the potential appeal of rental properties, especially those participating in the Section 8 program. The program's higher rental payments can help offset the costs associated with maintaining properties at a level suitable for voucher tenants, including any necessary repairs or upgrades to meet Housing Quality Standards.
Moreover, the lower percentage of renters implies that competition for available rental units is not intense, allowing landlords to negotiate terms that align with the FMR without risking vacancy. In this context, landlords should consider the long-term benefits of stable, government-backed rental income against the short-term costs of bringing their properties up to code.
To summarize, the $228, or 32.5%, gap between the FMR and market rent in ZIP 62272 makes it a compelling opportunity for landlords and small-portfolio investors seeking to maximize their returns. The Section 8 program can serve as a reliable source of income, particularly in an area where the demand for rental properties is limited.
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.