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 | $850 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,410 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,410 | $263,980 | 0.53% | F |
| 4BR | $1,670 | $379,499 | 0.44% | F |
U.S. Census Bureau data (2024)
7.4% of residents in ZIP 62535 are renters, indicating a modest demand for rental properties in the area. Given the $1,222 average market rent reported by the Census Bureau's American Community Survey, landlords can expect a steady but not explosive income stream from their investments. The Fair Market Rent (FMR) for ZIP 62535, set at $1410 for fiscal year 2024, provides a benchmark for rental pricing, suggesting that landlords who align their rents with this figure will be well-positioned to attract tenants while also maximizing their returns.
$309,848 is the median home value in ZIP 62535, which reflects a stable housing market where property values have not seen significant fluctuations. This stability is crucial for long-term investment strategies, as it reduces the risk of sudden drops in property value and ensures a predictable asset base. With a median income of $112,000, the local economy supports a comfortable standard of living, although it does not suggest an abundance of high-income earners who might be willing to pay premium rents. Landlords should consider this when setting rent prices to ensure they remain competitive yet profitable.
The lack of data on days on market (DOM) and the percentage of price cuts indicates that there is little public information available regarding the speed at which rental properties are being leased and the frequency of rental adjustments due to market conditions. However, given the modest renter share and stable median home values, it is reasonable to infer that the rental market in ZIP 62535 is relatively calm and does not experience rapid turnover or frequent price negotiations.
In conclusion, the rental market in ZIP 62535 offers a solid foundation for landlords and small-portfolio investors, with a clear path to profitability through alignment with the $1410 FMR. The modest renter population and stable housing market make for a predictable investment environment, ideal for those seeking consistent returns without the volatility often associated with higher-rent areas. Verdict: ZIP 62535 is suitable for Section 8 investments, providing a reliable return with low market risk.
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.