Location: Pike County, IL | Metro: Pike County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 62370 reveals interesting insights for landlords and small-portfolio investors. To begin, we must consider the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $930 per month for fiscal year 2026, based on metropolitan area standards.
Annualizing this figure, we find that the annual rental income would be $11,160 ($930 x 12 months). Given the median home value in the area is $111,088, this translates into an implied gross yield of approximately 10.05%. This calculation is derived by dividing the annual rental income by the median home value, providing a straightforward measure of potential returns.
However, it's important to note that the market rent is listed as N/A, which means there isn't enough data to provide a precise figure for comparison. In the absence of a specific market rent, we cannot accurately determine a second gross yield for ZIP 62370. Yet, the lack of detailed market rent information does not negate the utility of the Section 8 FMR as a benchmark for potential rental income.
Given the 12.1% renter density in the area, it's evident that a significant portion of the population may rely on rental housing. The N/A-day DOM (Days on Market) suggests either a very active rental market or incomplete data, making it difficult to assess the typical speed at which properties are leased. Nonetheless, the high renter density indicates a stable demand for rentals, which could support the use of Section 8 FMRs as a reliable source of income.
In conclusion, while the exact market rent remains unknown, the Section 8 FMR provides a solid basis for estimating potential returns. With a gross yield of about 10.05%, landlords and small-portfolio investors can expect reasonable returns when participating in the Section 8 program in ZIP 62370. This scenario should be considered alongside the local economic conditions and the specifics of individual investment strategies.
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.