Location: Cumberland County, IL | Metro: Coles County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 62440 is based on a significant financial gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,310, while the Census ACS reports the market rent at $850. This means there is a $460 difference, or a 35.3% gap, favoring the landlords who accept Section 8 vouchers.
In this scenario, where the FMR exceeds the market rent, landlords can leverage the higher FMR payments to generate a better yield on their investments. By accepting voucher tenants, landlords can charge the higher FMR rate, which is significantly above the local market rent. This makes the property a strong yield play, especially considering that only 4.2% of the population are renters, indicating a smaller pool of potential tenants and thus higher demand for rental properties.
The median home value in ZIP 62440 is $184,128, and the median income is $79,605. These figures suggest that homeownership is relatively affordable, but the income levels also indicate that many residents might struggle to afford the higher FMR rates without assistance. Therefore, landlords who cater to voucher tenants can secure steady, government-backed rental income that is above the prevailing market rates, making it an attractive investment strategy.
However, it's important to note that while the FMR provides a higher payment benchmark, the actual rents collected from voucher tenants are tied to the lower market rent. Landlords must ensure they are not charging more than the reasonable market rent to avoid penalties and maintain compliance with the Housing Choice Voucher program.
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.