Location: Hancock County, IL | Metro: Hancock County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 62380 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $960, while the Census American Community Survey (ACS) reports the market rent at $750. This creates a $210 gap, or a 28% difference, between what landlords could potentially charge and the subsidy amount provided by the Section 8 program.
In this scenario, where the FMR exceeds the market rent, accepting voucher tenants can be seen as a yield play for landlords. By renting properties to voucher holders, landlords can secure a steady stream of income that is closer to the higher FMR benchmark rather than fluctuating with the lower market rent. This stability can be particularly beneficial given that only 15.1% of residents are renters, suggesting a competitive rental market. However, it's important to note that the median home value is not available, which could indicate a variety of factors including limited data or a mix of property types. The median income of $75,000 suggests that homeownership might be more common, but also implies that there is enough financial stability among residents to support higher rents through voucher programs.
The cost of housing voucher tenants below open-market rates must be considered. While landlords receive a guaranteed payment, they may face challenges such as stricter maintenance requirements, inspections, and compliance with HUD regulations. Despite these potential drawbacks, the $210 per month increase over the market rate can offset the administrative burdens and still provide a favorable investment opportunity.
To summarize, the analysis in ZIP 62380 indicates that the FMR being above the market rent makes it advantageous for landlords to participate in the Section 8 program. This can lead to better yields and a more stable income source compared to the open market, especially in light of the relatively low percentage of renters and the higher median income level.
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.