Location: Fayette County, IL | Metro: Clay 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 | $740 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $770 | $92,051 | 0.84% | C |
U.S. Census Bureau data (2024)
ZIP 62426, located in Edgewood, Illinois, within Fayette County, serves as a strategic component of a Section 8 portfolio. Given the specific data points provided, it is best categorized as a cash-flow anchor. This classification is supported by the significant spread between the Fair Market Rent (FMR) for the metro area in fiscal year 2026 ($920) and the actual market rent ($566). The median home value in the area is $107,454, indicating a relatively affordable market.
The substantial difference between FMR and market rent suggests that landlords can achieve positive cash flow while still adhering to Section 8 guidelines. This makes ZIP 62426 a stable choice for those looking to maintain steady income through their investment properties. The lower median home value also implies that there is a larger pool of potential tenants who qualify for Section 8 assistance, further solidifying its role as a cash-flow anchor.
Moreover, the renter share in ZIP 62426 stands at 7.3%, which is modest but sufficient to ensure a consistent tenant base. With a median income of $51,667, residents have enough financial stability to cover their rent obligations, reducing the risk of default. However, the lack of specific data on price-cut share and days on market (DOM) prevents a comprehensive assessment of its potential as an appreciation play.
In summary, ZIP 62426 is well-suited as a cash-flow anchor within a Section 8 portfolio strategy due to its favorable rent-to-value ratio and stable tenant demographics. Landlords and small-portfolio investors can leverage this area to secure reliable rental income and diversify their holdings.
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.