Location: Bond County, IL | Metro: Bond County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to invest in ZIP 62284 for Section 8 properties begins with the Fair Market Rent (FMR) of $960, which is set for the fiscal year 2024. The first question to address is whether this FMR can cover the debt service on a property valued at $160,689.
If the answer is yes: The FMR of $960 must be sufficient to meet the monthly mortgage payment and other expenses associated with owning the property. Given that the median home value in ZIP 62284 is $160,689, and assuming typical financing terms, the FMR should indeed cover the debt service, making the investment financially viable under Section 8.
If the answer is no: This would indicate that the FMR is insufficient to cover the debt service. In such a scenario, purchasing a property in ZIP 62284 strictly for Section 8 purposes would not be advisable.
The second question concerns the relationship between the FMR and the market rent. For ZIP 62284, the market rent is currently not available, which makes direct comparison impossible.
If market rent were above FMR: This would suggest that Section 8 tenants might struggle to find non-subsidized housing, potentially leading to higher demand for Section 8 units. However, since the market rent is not provided, we cannot make this assessment.
If market rent were at or below FMR: This would imply that the subsidy provided by Section 8 is either equal to or exceeds the typical rental costs in the area, making it easier for tenants to afford housing without additional subsidies. Again, due to the lack of specific market rent data, this remains speculative.
The third and final question addresses the demand for Section 8 properties in ZIP 62284. With 13.0% of residents being renters and the days on market (DOM) information not available, we must consider the percentage of renters alone.
If there is sufficient demand: The 13.0% of renters suggests a moderate level of demand. However, without DOM data, it's challenging to gauge how quickly properties are rented out. A lower DOM would indicate strong demand, while a higher DOM could mean the opposite. Therefore, it depends on the DOM figures, which are currently unavailable.
If there is insufficient demand: A low percentage of renters combined with high DOM figures would signal weak demand for rental properties, including those intended for Section 8 tenants. Without the DOM data, this conclusion cannot be definitively reached.
In summary, for ZIP 62284, the FMR of $960 is likely to cover the debt service on a property valued at $160,689, assuming standard financing conditions. The absence of market rent data prevents a clear comparison with FMR, leaving this aspect open. Demand for rentals is present but moderate, with the strength contingent upon the DOM figures, which are not provided. To make a final decision, landlords should seek the most recent market rent and DOM data.
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.