Location: Shelby County, 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 | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $108,007 | 1% | C |
| 3BR | $1,280 | $183,522 | 0.7% | D |
| 4BR | $1,600 | $219,627 | 0.73% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 62550, Moweaqua, IL, stands at $73,634. This figure provides a benchmark for assessing whether the local households can afford the market rate rent of $885 per month. The Federal Market Rent (FMR) for ZIP 62550 in fiscal year 2024 is set at $1,110, which is significantly higher than the current market rate.
To understand the affordability gap, consider that a household earning the median income would typically allocate around 30% of their income towards housing costs. At $73,634 annually, this equates to approximately $1,841 monthly. Thus, the $885 market rate rent is well within the affordable range for most residents, allowing them to spend less than half of their income on housing.
However, the disparity between the market rate ($885) and the FMR ($1,110) indicates that landlords might face challenges if they rely solely on Section 8 vouchers. Voucher holders receive assistance up to the FMR, but the actual market rate is lower, meaning landlords could potentially charge less and still attract tenants without needing to participate in the voucher program.
In ZIP 62550, where 26.4% of the 2,858 population are renters, the competition among landlords is likely influenced by the availability of both cash-paying tenants and those using vouchers. Landlords who accept Section 8 vouchers will benefit from a guaranteed income stream, albeit at the lower market rate. On the other hand, landlords who focus on cash-paying tenants can potentially command rents closer to the median income level, maximizing their profits.
The takeaway for landlords is clear: while the voucher program ensures steady rental income, it caps potential earnings at the lower market rate. Cash-paying tenants offer the opportunity to earn more, but landlords must weigh the risk of vacancy against the benefits of higher rents. Given the affordability of the market rate compared to the median income, landlords have a strategic choice to make based on their financial goals and risk tolerance.
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.