Location: Pike County, IL | Metro: Pike County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 62361 presents several challenges for landlords considering Section 8 participation. Firstly, tenant turnover is a significant concern. While the Fair Market Rent (FMR) for the area is set at $1,070 for fiscal year 2026, the market rent remains unspecified, suggesting potential volatility in rental pricing. This ambiguity can lead to higher turnover rates if tenants find better deals elsewhere, impacting cash flow and necessitating frequent property management.
Vacancy exposure is another critical issue. The average days on market (DOM) for properties in this area is also not available, indicating uncertainty about how quickly a property might be rented out. A prolonged period of vacancy can strain finances, especially when relying on government vouchers that have fixed payment schedules.
The typical home value in ZIP 62361 is $126,703, while the median household income stands at $48,188. These figures suggest a potential risk of deferred maintenance. Landlords must ensure that properties meet the Housing Quality Standards (HQS) required by the Section 8 program. Given the relatively lower median income, tenants might have limited funds for upkeep, leaving landlords responsible for maintaining the property's condition without additional financial support.
Despite these challenges, there is a silver lining. The renter share in ZIP 62361 is 6.8%, which is notably high. High renter density often correlates with increased demand for housing assistance vouchers, providing a stable pool of potential tenants. This can mitigate some of the risks associated with tenant turnover and vacancy rates.
In conclusion, the risks associated with Section 8 investments in ZIP 62361 are substantial, particularly concerning tenant turnover and deferred maintenance. However, the high renter share offers a measure of stability. Based on these factors, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.