Location: Hancock County, IL | Metro: Hancock County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
U.S. Census Bureau data (2024)
The ZIP code 62321 is situated in a rural neighborhood characterized by a modest population size of 3,576 residents. Renters make up a significant portion of the local populace at 22.5%, indicating a notable demand for rental properties. The area enjoys a median household income of $76,825, which is relatively strong compared to many rural regions. However, the median home value stands at $117,227, suggesting that homeownership is still quite affordable.
Moving into the economic realities of renting, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920. This contrasts sharply with the actual market rent reported by the Census Bureau's American Community Survey (ACS), which is $678. This discrepancy presents an opportunity for investors who can leverage the higher FMR rates through participation in the Section 8 program, potentially increasing their revenue streams beyond the typical market rates.
Given these metrics, ZIP 62321 could be a suitable location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable demand for rental housing and the ability to receive higher rents through the Section 8 program make it an attractive investment. The lower market rent relative to the FMR indicates a margin for profit without requiring extensive property management skills.
On the other hand, hands-on value-add buyers might find opportunities to improve properties and command even closer to the FMR rate, thereby maximizing returns. With a solid median income but an affordable median home value, there is potential to renovate and upgrade properties to attract tenants willing to pay closer to the FMR, especially if they are seeking the benefits of the Section 8 program.
In summary, ZIP 62321 offers a balanced environment where investors can choose either a passive approach, benefiting from the voucher system, or an active strategy, enhancing property values and capturing higher rents. Both paths have clear advantages based on the local demographics and rental economics.
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.