Location: Richland County, IL | Metro: Jasper County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 62425 reveals several potential issues that landlords should be aware of before entering into Section 8 rental agreements. Firstly, the discrepancy between the non-existent market rent and the $920 Fair Market Rent (FMR) for fiscal year 2026 suggests that tenants might be more inclined to move when their vouchers expire, leading to higher tenant turnover. This can be costly due to the expenses associated with finding new tenants and preparing the property for them.
Secondly, the lack of Days on Market (DOM) data indicates an uncertainty regarding how quickly properties can be rented out, which poses a significant risk of vacancy exposure. Landlords must be prepared for potential periods of vacancy that could stretch indefinitely without a clear indication of how long it typically takes to fill a rental unit in this area.
Thirdly, the typical home value of $154,811 and a median income of $54,400 suggest that there might be deferred maintenance issues. The median income is relatively low compared to the typical home value, which could mean that many homeowners or landlords may struggle to keep up with necessary repairs and upgrades, impacting the quality of the rental stock available.
However, these risks must be weighed against the fact that 2.9% of the population are renters. High renter density often translates into a greater demand for housing vouchers, which can stabilize the rental market and provide a steady stream of tenants who are committed to paying their rent through the Section 8 program. Despite the low median income, the presence of a substantial number of renters in the area means that the likelihood of finding tenants willing to use their vouchers to secure housing is reasonable.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 62425 is moderate. While there are notable risks such as high tenant turnover, uncertain vacancy rates, and potential deferred maintenance, the stable demand for rental properties supported by voucher holders provides a counterbalance that mitigates some of these concerns.
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.