Location: Shelby 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 | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $76,334 | 1.22% | A |
| 3BR | $1,110 | $133,554 | 0.83% | C |
| 4BR | $1,400 | $154,589 | 0.91% | C |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 62557 in Pana, IL, include higher tenant turnover due to the significant gap between the market rent of $702 and the Federal Market Rent (FMR) of $950 for fiscal year 2026, which is based on the metro area. This disparity suggests that tenants might be attracted by the higher subsidy rate, leading to frequent moves as they seek better deals.
Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long properties might remain vacant between tenants, increasing the financial burden on the landlord.
The deferred maintenance risk is also notable, considering the typical home value of $102,642 and the median household income of $51,389. These figures indicate that homeowners might struggle to maintain their properties adequately, potentially leading to higher repair costs and more maintenance issues for landlords.
However, these risks must be weighed against the high proportion of renters in the area, with 28.8% of residents being renters. High renter density often correlates with greater demand for housing vouchers, which can provide a steady stream of tenants who are committed to paying their rent through the Section 8 program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.