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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $68,188 | 1.53% | A+ |
| 3BR | $1,340 | $129,215 | 1.04% | B |
| 4BR | $1,640 | $153,896 | 1.07% | B |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 62522 (Decatur, IL) might have several valid concerns regarding the financial viability of renting properties under the Section 8 program. Here's a straightforward analysis based on the data available.
Objection 1: Will FMR $970 (zip FY 2024) cover the mortgage on a $90,394 home?
The Fair Market Rent (FMR) for ZIP 62522 is set at $970 per month for FY 2024. To determine if this will cover the mortgage, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly payment on a $90,394 home would be approximately $450. This means that the FMR of $970 does indeed cover the mortgage payment, leaving a buffer of around $520 per month for maintenance, property taxes, and other expenses.
Objection 2: Is there enough renter demand at 38.5%?
Renter demand in Decatur, IL, stands at 38.5%. While this percentage might seem low compared to larger metropolitan areas, it still represents a significant portion of the housing market. A 38.5% rental rate suggests that nearly 4 out of every 10 households are renters, which is a substantial base for a landlord or small-portfolio investor. However, the data does not provide a complete picture of the specific demand for Section 8 rentals, so while the overall rental rate is positive, further research into the local Section 8 waiting list and tenant turnover rates would be advisable.
Objection 3: Will vouchers keep pace with $957 market rents?
The FMR of $970 is slightly above the current market rent of $957, indicating that vouchers should generally cover the cost of renting a property at market rates. However, it's important to note that voucher amounts can vary based on the size of the unit and the specific needs of the tenant. Landlords should be prepared for occasional adjustments in voucher payments to match the actual market conditions. The data provided does not offer insights into the historical trends of voucher payments relative to market rents, so while the current figures suggest alignment, future changes could impact this balance.
In conclusion, while the data presents a favorable scenario for covering mortgages and meeting market rents, the specific dynamics of the Section 8 program in ZIP 62522 require additional scrutiny to fully address all investor concerns.
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.