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 | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $810 | $121,572 | 0.67% | D |
U.S. Census Bureau data (2024)
In ZIP code 62414, there are several potential pitfalls for landlords considering Section 8 investments. Firstly, tenant turnover is a significant concern when comparing the market rent of $715 to the Federal Market Rent (FMR) of $990 for fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants may seek higher rental subsidies, leading to frequent moves and increased administrative burdens for landlords.
Vacancy exposure is another critical issue. With the days on market (DOM) being unavailable, it's challenging to gauge how quickly properties might fill. However, the typical home value in the area stands at $183,381, while the median income is only $58,370. This disparity indicates a higher likelihood of deferred maintenance, as lower-income residents might struggle to afford upkeep costs, potentially resulting in higher repair expenses for landlords.
Despite these challenges, the high renter share of 28.4% in ZIP 62414 presents an opportunity. High renter density typically correlates with greater demand for housing vouchers, which can stabilize occupancy rates. Landlords who can manage the administrative aspects and maintain their properties well will find a steady stream of tenants through the Section 8 program.
A final consideration is the competition among landlords for vouchers. Given the economic conditions and the number of renters, it's likely that many landlords already participate in the Section 8 program, which could limit the pool of available vouchers and increase the difficulty of securing tenants.
The verdict for ZIP 62414 is moderate risk for a first-time Section 8 landlord. While the high renter share offers some security, the administrative complexities and potential for deferred maintenance must be carefully managed.
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.