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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $59,571 | 1.78% | A+ |
| 3BR | $1,370 | $133,264 | 1.03% | B |
| 4BR | $1,670 | $194,757 | 0.86% | C |
U.S. Census Bureau data (2024)
The ZIP code 62526 in Decatur, IL, is a neighborhood with a total population of 30,483, where 39.2% of residents are renters. The median household income in this area is $49,062, reflecting a modest economic profile. The median home value stands at $97,398, indicating an affordable housing market. This combination of a significant rental population and relatively low home values suggests a community that is accessible to a wide range of income levels.
Moving into the realm of rent economics, the Fair Market Rent (FMR) for ZIP 62526 for fiscal year 2024 is set at $930. In contrast, the market rent, as measured by Zillow's Observed Rent Index (ZORI), is $1,119. This gap between the FMR and market rent highlights a potential opportunity for landlords who can manage properties efficiently to attract both voucher holders and market-rate tenants.
The question then becomes whether this neighborhood suits a hands-off voucher operator or a hands-on value-add buyer. Given the lower median income and the presence of a substantial rental market, a hands-off approach might be viable for those looking to leverage Section 8 vouchers. However, for those inclined towards a hands-on strategy, there is room to enhance property value and potentially command higher rents above the FMR but below the market rate of $1,119. This balance offers flexibility for different types of investors, depending on their risk tolerance and management capabilities.
In summary, ZIP 62526 presents a mixed landscape where affordability and modest income levels coexist with opportunities for both passive and active investment strategies. Landlords and small-portfolio investors should carefully consider the local dynamics and their own investment goals before engaging in this market.
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.