Location: Decatur, IL | Metro: Decatur, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 62551 in the Decatur, IL MSA reveals a competitive rental environment. The HUD Fair Market Rent (FMR) for ZIP 62551 in fiscal year 2024 is set at $810. In comparison, the market rent based on Census ACS data is slightly higher at $846. This indicates that landlords participating in the Section 8 program will experience marginal cash flow at the HUD FMR rate, as the voucher amount is just below the average market rent.
To further analyze the investment potential, consider the median home value in ZIP 62551, which stands at $128,269. Using this figure, we can calculate a rent-to-price ratio. At an average market rent of $846, the annual rent would be approximately $10,152, leading to a rent-to-price ratio of about 7.92%. This suggests that the rental income represents a significant portion of the property's value, making it a potentially attractive investment for those focused on cash flow.
However, the dynamics of the local housing market also play a crucial role. The median Days on Market (DOM) and the percentage of homes that require price cuts are not available, but these metrics typically influence the rent-versus-buy decision. If the DOM is high and a significant share of homes need price cuts, it could indicate a challenging buying market, which might favor rental investments over home purchases.
The strongest investor angle in ZIP 62551 is likely to be cash flow. Given the marginal difference between the HUD FMR and the market rent, investors can expect steady returns from rental income without the risk associated with property appreciation or market volatility. The consistent demand for rental properties, supported by the Section 8 program, ensures a stable and predictable source of income for landlords and small-portfolio investors.
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.