Location: Shelby County, IL | Metro: Shelby County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The ZIP code 62438 stands out due to its unique combination of factors that influence real estate investment decisions. With only 238 residents, it has a low population density, which is further characterized by a rental rate of just 10.0%. This indicates a predominantly owner-occupied area where the majority of residents prefer owning their homes rather than renting. The median income in this ZIP is $71,786, suggesting a relatively stable economic environment for its inhabitants. The median home value of $192,878 reflects a modest but secure housing market, suitable for conservative investors.
Moving into the specifics of Section 8 economics, the Fair Market Rent (FMR) for the metro area covering ZIP 62438 is set at $920 for fiscal year 2026. However, the lack of available market rent data for this specific ZIP means that landlords must rely on the FMR as a guideline for setting rental rates when accepting vouchers. This reliance can be seen as a limitation since it does not reflect the actual rental dynamics of the area, potentially leading to misalignment between voucher amounts and local market conditions.
Given the data signature, ZIP 62438 presents a stable environment for Section 8 investments. The modest median home value and median income indicate a community that is likely to maintain consistent demand for affordable housing options. Despite the absence of precise market rent data, the low rental rate suggests limited competition from non-subsidized rentals, making it easier for landlords to attract tenants who benefit from the Section 8 program. The stability of the area's economic indicators supports long-term investment strategies, particularly for those interested in serving a niche market with fewer large-scale competitors.
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.