Location: Shelby County, IL | Metro: Effingham County, IL
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $790 | $227,000 | 0.35% | F |
| 2BR | $930 | $147,855 | 0.63% | D |
| 3BR | $1,230 | $233,137 | 0.53% | F |
| 4BR | $1,430 | $324,640 | 0.44% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 62401 in Effingham, IL, are significant and must be carefully considered. First, tenant turnover can be a major issue. The market rent in this area is $735, while the Fair Market Rent (FMR) for FY 2026 is set at $920 for the metro region. This discrepancy suggests that tenants might frequently seek higher-paying situations, leading to higher turnover rates and associated costs.
Vacancy exposure is another concern. With an unknown number of days on the market (DOM), it's challenging to predict how long a property might remain vacant. Vacancies can lead to financial strain, especially when rental income is crucial for maintaining cash flow. Landlords must be prepared for periods without guaranteed income.
Deferred maintenance is also a risk factor. The typical home value in ZIP 62401 is $226,136, and the median household income is $82,374. These figures indicate that homeowners may struggle to keep up with necessary repairs and improvements, which can affect the overall condition of properties and increase maintenance costs for landlords.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 25.1%. High renter density typically correlates with higher demand for rental housing, including Section 8 vouchers. This demand can help ensure a steady stream of potential tenants and reduce the likelihood of extended vacancies.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 62401 is moderate. While there are challenges related to tenant turnover and deferred maintenance, the strong renter base provides a solid foundation for managing these risks effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.