Location: Shelby County, IL | Metro: Decatur, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The ZIP code 62544, located in Shelby County, IL metro, can serve as a strong cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the favorable spread between the Fair Market Rent (FMR) for FY 2024 and the current market rent. The FMR for a one-bedroom unit in ZIP 62544 is set at $910, while the average market rent stands slightly higher at $918. This minimal gap of just $8 means that landlords participating in the Section 8 program will be able to maintain steady cash flows without significant rent loss.
A key advantage of anchoring cash flow in ZIP 62544 is the alignment with the median home value, which is $152,037. This indicates a stable housing market where property values are unlikely to fluctuate drastically, ensuring long-term stability for investments. Additionally, the median income in the area is relatively high at $89,167, which supports the financial health of the tenant pool and reduces the risk of default.
While the ZIP code does not present an immediate opportunity for rapid appreciation, as indicated by the N/A% price-cut share and N/A-day Days on Market (DOM), the focus should be on the consistent and reliable cash flow it provides. The 14.1% renter share in the area suggests a moderate demand for rental properties, which is suitable for maintaining a balanced portfolio but not necessarily for aggressive growth through appreciation plays.
In summary, ZIP 62544 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the close alignment between FMR and market rents, coupled with a stable median home value and healthy median income levels. This ensures that landlords can rely on steady returns without the volatility associated with markets focused on rapid appreciation.
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.