Location: Fayette County, IL | Metro: Fayette County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 62418 for Section 8 investment, follow this decision tree based on the given data points.
Step 1: Determine if the Fair Market Rent (FMR) of $970 can cover the debt service on a $160,012 property. The FMR is the maximum amount that a landlord can charge for a rental unit under the Section 8 program. For a $160,012 property, typical debt service would include mortgage payments, property taxes, insurance, and maintenance costs. Without specific debt service figures, we cannot definitively say yes or no. However, if your debt service is less than $970 per month, then the answer is yes. Otherwise, it's no.
Step 2: Compare the market rent of $958 with the FMR. Since the market rent is slightly below the FMR, you can expect a small margin between the two rates. This margin indicates that landlords might receive a slightly higher income from Section 8 compared to market rent. Thus, if the FMR clears debt service, then the answer is yes.
Step 3: Evaluate the demand for rentals. In ZIP 62418, 22.0% of residents are renters, and the Days on Market (DOM) is listed as N/A. A 22.0% rental rate suggests moderate demand. However, without DOM data, assessing how quickly properties are rented out is impossible. If you assume that the N/A DOM indicates a quick turnover, and the 22.0% rental rate is stable, then the answer is yes. If the DOM is unexpectedly high, then the answer is it depends, as high DOM could signify lower demand or longer vacancy periods.
In summary, for ZIP 62418, the decision to invest in Section 8 properties hinges on whether the FMR of $970 can cover the debt service on a $160,012 property. If so, and assuming the DOM is low, the market conditions support a yes decision. If the debt service exceeds the FMR or if the DOM is higher than expected, then the answer shifts to no or it depends, respectively.
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.