Section 8 Fair Market Rent (FMR) for ZIP 62524 - 2027

FY 2027 Fair Market Rent Rates

ZIP 62524, located within the Decatur, IL MSA metro area, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 62524 in fiscal year 2024 is set at $940 for a 1-bedroom unit. This figure is crucial when determining the rental income potential for properties in this area.

The real estate market in ZIP 62524 offers several homes for sale that could be viable investments for landlords and small-portfolio investors. For instance, a house listed for $168,000 with 3 bedrooms and 3 bathrooms would likely generate stable rental income given the FMR. The spread between the FMR and the typical selling price of homes in this area indicates a reasonable margin for profit, making it an attractive option for those seeking steady cash flow.

While specific data on median home values and median incomes were not available, the presence of multiple homes listed for sale suggests a diverse housing market. The range of prices from foreclosed homes at $24,000 to houses at $184,000 provides opportunities for different investment strategies, but the FMR benchmark of $940 remains a reliable indicator for cash flow potential.

In summary, ZIP 62524 should be considered as a cash-flow anchor within a Section 8 portfolio due to its stable rental income potential based on the FMR. This allows investors to rely on consistent returns without the speculative risks associated with appreciation plays or highly volatile markets.

Data Sources: FMR data from HUD (2027).

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.