Location: Jasper County, IL | Metro: Clark 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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $125,002 | 0.91% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 62420 hinges on the interplay between its yield potential and market stability, which are influenced by factors such as the Fair Market Rent (FMR), median home values, and the percentage of renters. For ZIP 62420, the FMR for the metro area in fiscal year 2026 is $970, while the market rent stands at $701. This suggests that there is an opportunity to capture higher rents compared to the local market average, indicating a decent yield potential.
However, the median home value in ZIP 62420 is $123,456, which is significantly lower than the rent differential might suggest. This implies that the cost basis for investment properties is relatively low, enhancing the overall yield when considering the rental income against property value. The median household income in the area is $65,771, which provides some insight into the financial capacity of potential tenants but does not directly correlate with stability metrics such as days on market (DOM).
The stability of the market is partially indicated by the 15.8% of residents who are renters. While this figure is not exceptionally high, it does suggest that a notable portion of the population is likely to be looking for rental housing, thus supporting a steady demand for rental units. The absence of data regarding days on market (DOM) makes it challenging to fully assess the turnover rate and tenant retention capabilities of the area.
Based on the available data, ZIP 62420 appears to be positioned in a middle-ground scenario. It is neither a high-yield/low-stability 'flip-style' market nor a purely steady-cashflow zone. The potential for higher-than-market rents coupled with a lower median home value points towards a moderate yield opportunity. Meanwhile, the percentage of renters and median income figures suggest a degree of stability in the rental market, though the lack of DOM data introduces an element of uncertainty.
To summarize, the key figures driving this assessment are the FMR of $970 versus the market rent of $701, the median home value of $123,456, and the 15.8% of renters. These indicators point towards a market that offers reasonable yields without the volatility associated with high-risk, high-reward strategies.
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.