Location: Pike County, IL | Metro: Pike County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 62356 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $920 per month for fiscal year 2026. This figure is specific to this ZIP code and reflects the maximum amount that the Housing Choice Voucher program will pay toward rent for a unit of this size. In contrast, the local market rent for a two-bedroom apartment, based on Census ACS data, is currently running at $688 per month.
A voucher payment is composed of several parts: the tenant's portion of the rent and utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. The remaining balance up to the SAFMR is covered by the voucher, subject to certain conditions. Utility allowances are also part of the calculation but vary depending on the specific circumstances and the region's average costs.
To walk through an example, let’s assume a tenant’s portion of the rent is $276 per month, which represents 30% of a hypothetical income of $920. The voucher would then cover the difference between the tenant's portion and the SAFMR. However, since the local market rent is lower at $688, the voucher payment would adjust accordingly.
In practice, the voucher would pay the landlord the difference between the tenant's contribution and the market rent, if the market rent is below the SAFMR. Here, the voucher would pay $412 per month ($688 - $276), ensuring the landlord receives the full market rent of $688. This leaves no reimbursement gap or surplus for the landlord in this scenario, as the total rent matches the market rate exactly.
If the landlord charges more than the local market rent but less than the SAFMR, say $800, the voucher would still cover the difference, paying $524 per month ($800 - $276). This would result in a $112 surplus for the landlord compared to the market rate, but it would still be below the SAFMR limit.
However, if the landlord sets the rent above the SAFMR, they risk not being able to attract tenants with vouchers, as the program will not cover the excess. Therefore, setting the rent at or slightly below the SAFMR is advisable to ensure consistent occupancy without leaving money on the table.
In ZIP 62356, landlords should expect a reimbursement gap or surplus when the actual rental price deviates from the market rent of $688. If the rent is set higher than the market rate but within the SAFMR, the landlord will see a surplus. Conversely, if the rent is set below the market rate, the landlord will have a gap to make up, though this is unlikely given the SAFMR is already higher than the market rate.
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.