Location: Decatur, IL | Metro: Decatur, IL MSA
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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $66,423 | 1.78% | A+ |
| 3BR | $1,520 | $153,763 | 0.99% | C |
| 4BR | $1,860 | $230,647 | 0.81% | C |
| 5BR | $2,158 | $372,540 | 0.58% | F |
U.S. Census Bureau data (2024)
The dynamics of the Decatur, IL market, represented by ZIP code 62521, reveal a balanced environment between supply and demand, leaning slightly towards demand. The Fair Market Rent (FMR) for the area stands at $1000 for fiscal year 2024, while the market rent, as indicated by ZORI (Zillow Observed Rent Index), is slightly lower at $951. This suggests that rental properties are priced competitively, with landlords adjusting their rates to match the market, rather than setting them above the government's recommended fair market value.
The low price-cut share of 0.2% and a modest Days on Market (DOM) of 21 days point to a scenario where homes are generally selling at or near their asking price without significant discounts, indicating strong buyer interest. However, this does not necessarily mean that demand outpaces supply, but rather that the market is efficient and buyers are willing to meet sellers' expectations.
The median home value of $120,354 is a critical indicator of the overall affordability and economic status of the area. It suggests that the housing stock is relatively inexpensive, which can attract first-time buyers and those looking for affordable options. This median value also implies that there might be a segment of the population that finds homeownership accessible, which could reduce the long-term pressure on rentals.
The 25.5% renter share highlights that a considerable portion of the population opts for renting over buying. This high percentage of renters can indicate several factors: a transient population, young professionals, students, or individuals who prefer flexibility over homeownership. Given this statistic, it is reasonable to infer that there will be sustained demand for rental properties, even if the overall housing market sees an increase in homeownership rates. This dynamic creates a stable long-term rental market, beneficial for landlords and small-portfolio investors.
In summary, the market in ZIP 62521 presents a scenario where demand meets supply effectively, with rental properties being a significant part of the housing landscape due to the high renter share. For investors, this means a steady rental market with potential for growth as the population continues to seek affordable housing options.
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.