Location: Montgomery County, IL | Metro: Christian County, IL
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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $96,666 | 0.96% | C |
| 3BR | $1,110 | $173,903 | 0.64% | D |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 62546 (Morrisonville, IL) for Section 8 properties involves several key questions based on the financial metrics and market conditions.
1) Does the Fair Market Rent (FMR) of $920 per month cover the debt service on a property valued at $149,182?
Yes: The FMR of $920 is sufficient to clear debt service on a property priced at $149,182. Assuming a typical mortgage rate, this rental income would be adequate to meet monthly payments.
No: If the FMR does not cover the debt service, then purchasing a property for Section 8 in this area is not financially viable. A lower-priced property or one with lower financing costs would be necessary to ensure that the $920 FMR can support the mortgage.
2) How does the market rent of $625 compare to the FMR?
Above FMR: If the market rent were above $920, it would indicate that there is potential for higher rents outside of Section 8. However, since the actual market rent is $625, which is below the FMR, this suggests that the Section 8 program offers a higher rent guarantee than what the market currently supports.
At FMR: This scenario is not applicable given the current data.
Below FMR: The market rent of $625 is below the FMR of $920, indicating that the Section 8 program provides a higher rent guarantee. This makes Section 8 an attractive option for securing a steady stream of income without the risk of vacancy.
3) Is the demand sufficient with 9.9% of residents being renters and N/A days as Days on Market (DOM)?
It Depends: With only 9.9% of residents being renters, the overall demand for rental properties might be low. The lack of data on Days on Market (DOM) means we cannot assess how quickly properties are rented out. If the DOM is high, it could indicate difficulty in finding tenants, even with Section 8. Conversely, if the DOM is low, it suggests strong demand despite the low percentage of renters.
In summary, ZIP 62546 presents a mixed picture for Section 8 investments. The FMR adequately covers debt service, providing a stable income source. However, the market rent being below the FMR highlights the value of Section 8 guarantees. The low percentage of renters poses a challenge but can be mitigated if properties are rented quickly, indicated by a low DOM. Conduct further research into the local rental market trends to make a final decision.
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.