Location: Lawrence County, IL | Metro: Lawrence 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 | $660 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $71,344 | 1.33% | A |
| 3BR | $1,160 | $131,272 | 0.88% | C |
U.S. Census Bureau data (2024)
To classify ZIP code 62439 in Illinois, we must analyze the yield and stability factors closely. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $950. However, the actual market rent for the area stands at $876. This indicates that while there is potential for higher rental income, the market may not fully support the FMR, suggesting some volatility.
The median home value in ZIP 62439 is $98,082, which is relatively low. This figure supports the notion that the area could be suitable for flipping properties if the market conditions allow for quick sales and capital gains. Yet, it's important to note that the low home value also reflects on the overall economic status of the area.
Moving onto stability, the percentage of renters in the area is 37.0%. This is a moderate figure, indicating that while a significant portion of the population rents, there is still a considerable number owning homes. Unfortunately, the data does not provide the number of days on market (DOM), which would have been useful for assessing how quickly properties can be rented out or sold. The median household income in the area is $53,622, which is another factor that influences stability. A lower income level suggests that tenants might be more sensitive to economic downturns and could face challenges in maintaining consistent rental payments.
Based on these figures, ZIP 62439 leans towards being a high-yield/low-stability market. The potential for higher rental income is present, but the relatively low median home value and household income indicate instability. Landlords and small-portfolio investors should prepare for fluctuating cash flows and possibly higher vacancy rates or tenant turnover. While the area offers opportunities for short-term investment strategies such as property flipping, it may not be ideal for long-term, steady cash flow investments due to the economic conditions and the balance between renters and homeowners.
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.