Location: Richland County, IL | Metro: Crawford County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 62421 are notable and should be carefully considered. Firstly, tenant turnover can be a significant issue, especially when comparing the market rent of $833 to the Federal Market Rent (FMR) of $980 for the fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants might be inclined to move out as soon as they find a better deal, leading to higher turnover rates.
Vacancy exposure is another concern, though specific data on days on market (DOM) is not available. Given the typical home value of $169,444 and the median income of $55,833, it's reasonable to expect that vacancies could persist longer than desirable, particularly if the rental market becomes competitive. Landlords must be prepared to handle extended periods without tenants, which can strain cash flow.
Deferred maintenance is a critical factor to consider, especially in areas where the median income does not support substantial investments in property upkeep. The median income figure indicates that tenants might not have the financial capacity to cover maintenance costs beyond what is stipulated in their vouchers, thus placing the burden squarely on the landlord. Regular maintenance and timely repairs are essential to avoid costly issues that can arise from neglect.
However, these risks are somewhat mitigated by the high renter share of 12.0%. A significant portion of the population renting homes often correlates with higher demand for housing vouchers, making it easier to find qualified tenants willing to use Section 8 vouchers. This demand can provide a steady stream of renters, reducing the likelihood of prolonged vacancies.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 62421 is moderate. While there are challenges related to tenant turnover and maintenance, the high renter share provides a buffer against vacancy risks.
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.