Section 8 Fair Market Rent (FMR) for ZIP 62422 - 2027

Location: Shelby County, IL | Metro: Fayette County, IL

Investment Score for ZIP 62422

N/A

Monthly Rent (2BR)

$940

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$660
1 Bedroom	$760
2 Bedrooms	$940
3 Bedrooms	$1,130
4 Bedrooms	$1,390
5 Bedrooms	$1,612
6 Bedrooms	$1,805
7 Bedrooms	$1,949
8 Bedrooms	$2,046

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,130	$178,135	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

926

Median Household Income

$75,074

Housing Units

393

Renter Percentage

21.3%

Occupancy Rate

94.4%

Renter Occupied

The ZIP code 62422, located in the metro region of Southern Illinois, offers a stable market for real estate investment, particularly in rental properties. The area is characterized by modest housing values and a significant portion of renters, making it an attractive location for landlords and small-portfolio investors.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $920, indicating a benchmark for rental pricing that landlords should aim to meet or slightly exceed.
The average market rent for the area, based on Census ACS data, stands at $720, suggesting there's room for landlords to increase their rents closer to the FMR without deterring tenants.
The median home value in ZIP 62422 is $145,093, which is relatively low compared to other regions in the United States, providing an opportunity for investors to purchase properties at a lower cost.
Renters make up 21.3% of the population, showing a demand for rental properties and highlighting the potential for steady occupancy rates.
The median income in the area is $75,074, which suggests that residents have the financial capacity to afford higher rents, especially if they're currently paying below the FMR.
The Days on Market (DOM) data is not available, but this could be due to a robust sales market where properties sell quickly, or it might indicate a lack of recent transactions, which could be further investigated for investment opportunities.

Synthesizing these points, ZIP 62422 presents a viable market for real estate investment, especially in rental properties. With a median home value under $150,000, investors can acquire properties at a reasonable price. The gap between the current market rent and the FMR provides an avenue for increasing rental income, while the median income supports the affordability of such increases. Given the substantial renter share, there's a consistent demand for rental units, ensuring steady cash flow for investors. However, the absence of DOM data requires additional research to understand the local real estate dynamics fully.

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.