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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $174,262 | 0.87% | C |
U.S. Census Bureau data (2024)
The ZIP code 62554 is situated in a predominantly suburban setting, characterized by a relatively small population of 1,832 residents. The area boasts a high median income of $95,625, indicating a generally affluent community. However, only 10.8% of the residents are renters, which suggests that homeownership is the predominant form of housing tenure in this region. The median home value stands at $175,609, reflecting the overall cost of living and property values in the area.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 62554 as of the fiscal year 2024 is set at $1,050. This figure is notably higher than the reported market rent of $928, according to the Census American Community Survey (ACS). This discrepancy between FMR and market rent can be advantageous for landlords participating in the Section 8 program, as it allows them to potentially charge slightly above the average market rate while still being within the subsidized limits.
Given these economic conditions, ZIP 62554 is likely to appeal more to hands-off voucher operators who seek stable and predictable returns without the need for extensive property management. The higher FMR compared to the market rent means that landlords can benefit from a margin that covers maintenance and other operational costs. However, for hands-on value-add buyers looking to improve properties and increase their rental value, the limited number of renters and the relatively low market rent might present challenges in finding sufficient opportunities to justify the investment and effort required for property enhancements.
In summary, ZIP 62554 offers a favorable environment for hands-off Section 8 landlords due to its high median income and the gap between FMR and market rent. For those interested in a more active role in property management and improvement, the area may not provide the ideal conditions given the smaller percentage of renters and lower market rents.
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.