Location: Adams County, IL | Metro: Adams County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 62338 are significant and must be carefully considered. Tenant turnover is a major concern due to the disparity between the market rent and the Fair Market Rent (FMR) set at $1,160 for fiscal year 2026 in the metropolitan area. This difference can lead to higher turnover rates, as tenants might leave when they find more affordable options outside the program.
Vacancy exposure is another issue, especially considering the lack of data on days on market (DOM). Without this information, it's difficult to predict how long properties might remain vacant, which can result in lost rental income and increased costs associated with maintaining unoccupied units.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $231,333 and a median income of $91,473, landlords must ensure that their properties meet the required standards without overextending their budgets. The cost of repairs and maintenance can quickly add up, putting financial pressure on the landlord if the property does not generate sufficient income to cover these expenses.
However, the 4.1% renter share indicates a relatively high concentration of renters in the area, which often translates into a higher demand for housing vouchers. This demand can provide a steady stream of qualified tenants, reducing the likelihood of prolonged vacancies and ensuring a stable income source.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 62338 suggests a moderate risk for a first-time Section 8 landlord. While there are significant risks, the potential benefits of a stable tenant pool and consistent rental income make this an opportunity worth considering with careful planning and management.
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.