Location: Adams County, IL | Metro: Adams County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 62347 is centered around the significant gap between the Fair Market Rent (FMR) set at $1,010 for the fiscal year 2026 and the current market rent of $790 based on Census ACS data. This gap amounts to $220, representing a 28% difference. Given that the FMR exceeds the market rent, it becomes evident that properties in this area can attract voucher tenants, thereby enhancing the rental yield for landlords and small-portfolio investors.
The higher FMR allows landlords to charge closer to the $1,010 rate for Section 8 tenants without exceeding the limit set by the government. This means that landlords can potentially earn an additional $220 per month, or 28%, compared to the typical market rent of $790. For those who own properties in ZIP 62347, this represents a lucrative opportunity to increase their monthly cash flow significantly.
In the broader context of ZIP 62347, where only 5.2% of the population are renters, the median home value stands at $233,855, and the median income is $93,810, the attractiveness of rental properties to voucher holders can be seen as a strategic advantage. The low percentage of renters suggests a smaller pool of potential tenants, making the Section 8 program a valuable source of steady occupancy. Moreover, the relatively high median home value and median income indicate that owning a home is the norm, which further supports the idea that rental properties catering to voucher tenants could see strong demand.
For landlords, this scenario translates into a yield play. They can leverage the higher FMR to secure rental income that is above the local market average, thus improving their financial returns. Additionally, the stability provided by the federal housing assistance ensures a reliable tenant base, reducing the risk of vacancy and non-payment of rent.
In summary, the gap between the FMR and market rent in ZIP 62347 presents a clear opportunity for landlords and small-portfolio investors to capitalize on the Section 8 program. By charging closer to the FMR, they can achieve a higher rental yield while providing affordable housing options to tenants who might otherwise struggle to find suitable accommodation in this area.
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.