Location: Perry County, IL | Metro: Jackson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The ZIP code 62274 is situated in a suburban neighborhood characterized by a relatively small population of 8,041 residents. The area has a modest rental market share, with only 13.0% of households being renters, indicating a primarily owner-occupied community. The median household income stands at $71,658, which suggests a middle-class demographic. Median home values are notably lower at $123,768, pointing to an affordable housing market.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP 62274 in fiscal year 2024 is set at $930. In stark contrast, the actual market rent based on Census ACS data is reported to be $441, revealing a significant discrepancy between the subsidized rent rates and the local market conditions. This gap presents opportunities for both hands-off voucher operators and hands-on value-add buyers.
For hands-off voucher operators, the ZIP code 62274 offers a stable environment where the government's rental subsidy can cover a substantial portion of the market rate, ensuring consistent cash flow without the need for active property management. However, the low percentage of renters might limit the pool of potential tenants eligible for Section 8 vouchers.
A hands-on value-add buyer could capitalize on the disparity between the FMR and the current market rent by improving properties and charging closer to the $930 FMR. Such an approach would require active involvement in property upgrades and tenant screening but could yield higher returns due to the underpriced local market.
In summary, ZIP 62274 provides a balanced opportunity for Section 8 investors, offering an affordable entry point into a middle-income suburban market. Whether to pursue a passive or active investment strategy depends on the investor's goals and willingness to engage in property improvements.
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.