Location: Cumberland County, IL | Metro: Coles County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 62469 reveals some critical insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $1,050 per month. To calculate the implied gross yield based on this figure, we must first annualize it. This results in an annual rent of $12,600 ($1,050 x 12 months).
Unfortunately, the median home value and market rent for ZIP code 62469 are not available. However, the lack of market rent data does not prevent us from making a comparative analysis. The implied gross yield using the FMR would be calculated by dividing the annual rent by the property's value. Since the median home value is not available, we cannot provide a precise percentage for the gross yield under this scenario. But let's assume a median home value of $200,000 for illustrative purposes; the implied gross yield would then be 6.3% ($12,600 / $200,000).
In reality, the actual gross yield could vary significantly depending on the true median home value and the actual market rent. Given that only 38.4% of residents are renters, it suggests a relatively low demand for rental properties compared to owner-occupied homes. This can impact the ability to consistently lease properties at the FMR rate. Additionally, the number of days on the market (DOM) is not available, which would further clarify the ease of finding tenants.
Despite these uncertainties, the FMR-based gross yield provides a useful benchmark. If the market rent were higher than $1,050 per month, the gross yield would also be higher, making investment in rental properties more attractive. Conversely, if the market rent is lower, the gross yield would decrease, potentially reducing the appeal of such investments.
To conclude, while the exact cap rate cannot be determined without complete data, the FMR-based gross yield offers a starting point for analysis. Investors should consider local market conditions and the actual median home value when making decisions about Section 8 participation in ZIP code 62469.
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.