Section 8 Fair Market Rent (FMR) for ZIP 62275 - 2027

Location: Bond County, IL | Metro: St. Louis, MO-IL HUD Metro FMR Area

Investment Score for ZIP 62275

N/A
Monthly Rent (2BR)
$1,080
Median Price (2BR)
$N/A
1% Rule
0%
Annual Yield
0%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$780
1 Bedroom$960
2 Bedrooms$1,080
3 Bedrooms$1,400
4 Bedrooms$1,470
5 Bedrooms$1,705
6 Bedrooms$1,910
7 Bedrooms$2,063
8 Bedrooms$2,166

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
3BR $1,400 $258,161 0.54% F
4BR $1,470 $333,935 0.44% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
3,012
Median Household Income
$85,000
Housing Units
1,247
Renter Percentage
19.5%
Occupancy Rate
95.6%
Renter Occupied
233

The economics of Section 8 housing in ZIP code 62275 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1160 for the fiscal year 2024. This SAFMR is specific to this ZIP code, reflecting localized rental conditions. In contrast, the local market rent for a two-bedroom unit, based on Census ACS data, averages $742.

A landlord participating in the Section 8 program receives payments from the government to cover the rent. However, the total amount paid includes both the tenant's contribution and the utility allowance. Typically, the tenant pays 30% of their adjusted income toward rent. If we assume an average adjusted income of $1920 (based on historical data), the tenant would contribute approximately $576 towards the rent. Additionally, there is a utility allowance that varies but can be estimated around $200 per month for a two-bedroom apartment.

The voucher reimbursement to the landlord is calculated as the lesser of the SAFMR or the actual rent charged. In this case, if the landlord charges the SAFMR rate of $1160, the total reimbursement would be $1160. With the tenant contributing $576 and the utility allowance adding $200, the government would pay the remaining balance. This means the government would reimburse $1160 - $576 = $584, plus the $200 utility allowance, totaling $784 to the landlord.

If the landlord charges less than the SAFMR, say the market average of $742, the reimbursement would be the actual rent minus the tenant’s contribution plus the utility allowance. Thus, the government would pay $742 - $576 = $166, plus the $200 utility allowance, totaling $366 to the landlord.

In ZIP 62275, the typical reimbursement gap or surplus for a two-bedroom apartment is a surplus when charging the SAFMR rate of $1160. The landlord receives $784 from the government, which is above the local market rent of $742. Conversely, if the landlord charges the market average of $742, they receive $366 from the government, resulting in a smaller surplus or even a slight deficit if operating costs exceed this amount.

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.