Location: Shelby County, IL | Metro: Shelby 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 | $680 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $120,200 | 0.81% | C |
| 3BR | $1,160 | $168,362 | 0.69% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 62463, located in Stewardson, IL, within the Shelby County, IL metro area, does not favor landlords. The Fair Market Rent (FMR) set at $1,020 for fiscal year 2026 contrasts sharply with the actual market rent reported by the Census ACS at $779. This discrepancy indicates that landlords may struggle to cover costs and generate profit at the higher FMR rate.
Acquisition of properties in this ZIP code is relatively affordable. The median home value stands at $169,069, which is below many metropolitan areas. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts to sell suggests that the market dynamics could be less favorable than the low median value implies. Without these metrics, it's difficult to assess how quickly and easily homes can be sold or whether they require significant discounts.
Tenant demand in ZIP 62463 is modest given its small population size of 1,103 residents, with only 13.1% of them being renters. This limited pool of potential tenants could make it challenging to consistently fill units, especially if rents are set closer to the FMR rather than the lower market rates.
Verdict: While the median home value in ZIP 62463 offers an affordable entry point for property acquisition, the mismatch between FMR and market rent, along with the limited tenant demand, makes this location less attractive for landlords and small-portfolio investors seeking consistent profitability and occupancy. Landlords should carefully consider setting rents at market levels to ensure viability and avoid overestimating potential income based on FMR figures.
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.