Location: Decatur, IL | Metro: Decatur, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP Code 62523, located in Decatur, IL, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $810, while the Census ACS data indicates that the average market rent is $301. This creates a gap of $509, or approximately 169%, between what landlords can charge under the voucher program and the open-market rental rates.
This discrepancy makes the area a prime yield play for landlords and small-portfolio investors. Voucher tenants provide a guaranteed and steady stream of income, often backed by federal subsidies, which can lead to higher returns compared to renting at market rates. Given that 90.7% of the population are renters and the median household income is $13,393, it's clear that many residents rely on affordable housing options like Section 8 vouchers.
The high FMR relative to market rents means that landlords could potentially receive more than double the typical rental rate for their properties. However, this also implies that housing voucher tenants might struggle to afford open-market rates if they were to move out of the voucher system. It's important for investors to understand that while the FMR provides a higher rental rate, it also comes with certain administrative responsibilities and regulations associated with the Section 8 program.
To further investigate the specifics of the market and FMR data, refer to the sources provided. The HUD User website offers comprehensive information on SAFMRs, including those for ZIP Code 62523. Additionally, the detailed profile available on City-Data.com provides insights into the demographic makeup of the area, which can inform investment decisions.
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.