Location: Pike County, IL | Metro: Brown County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 62323 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $940. However, the market rent is listed as N/A, which means there is insufficient data to determine the exact market rate for the area. This lack of information makes it challenging to calculate the precise gap in dollars and percentage.
Given that the FMR is established at $940, landlords and small-portfolio investors must consider the implications of this figure. If the FMR exceeds the market rent, it indicates that voucher tenants can potentially cover rents higher than what typical market conditions would bear. This scenario transforms the investment into a yield play, where landlords can secure a stable cash flow with less risk of vacancy. Voucher tenants provide a guaranteed rental income, which can be attractive when market conditions are weak or uncertain.
In contrast, if the FMR is lower than the market rent, landlords accept housing voucher tenants at a rate below the open-market price. This decision comes with the understanding that while they might forgo some immediate revenue, the long-term stability of having a tenant who is backed by government funding ensures consistent occupancy and reduces the risk of unpaid rent. Additionally, this can be seen as a way to support affordable housing initiatives, which aligns with broader social goals.
The analysis must be anchored in the local economic context. With 12.6% of residents being renters, there is a significant portion of the population relying on rental properties. Although the median home value is not available, the median household income stands at $92,917. This suggests that while some residents may have the financial capacity to afford market-rate rents, others may need assistance through housing vouchers to find suitable accommodation.
To summarize, the Section 8 program in ZIP 62323 offers a strategic opportunity for landlords and investors. It provides a reliable source of rental income, particularly when the FMR is higher than the prevailing market rates. Even when the FMR is lower, accepting voucher tenants can be a responsible choice that supports affordability without sacrificing the integrity of the investment portfolio.
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.