Location: Shelby County, IL | Metro: Shelby 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 | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $102,774 | 0.9% | C |
| 3BR | $1,110 | $170,095 | 0.65% | D |
| 4BR | $1,380 | $192,047 | 0.72% | D |
U.S. Census Bureau data (2024)
The ZIP code 62565, encompassing Shelbyville, IL, presents a market in equilibrium, leaning slightly towards demand outpacing supply. This inference is drawn from the snapshot of the current Fair Market Rent (FMR) at $920 for the fiscal year 2026, which is notably higher than the market rent reported at $805 based on Census ACS data. The disparity between these two figures suggests that rental values are trending upwards, indicating potential growth in demand.
A further indication of this dynamic is the low price-cut share of 0.2%. In a market where supply significantly exceeds demand, one would expect a higher percentage of homes being listed at reduced prices to attract buyers. The minimal price-cut share implies that homes are selling close to their original asking prices, a sign that demand remains robust relative to the available inventory.
The median home value stands at $149,890, which is a critical figure for understanding the affordability and desirability of the area. While this value does not provide a direct measure of the balance between supply and demand, it contributes to the overall picture of a market where housing is accessible to a broad range of buyers, potentially sustaining demand levels.
The 30.8% renter share in Shelbyville, IL, underscores a significant portion of the population preferring or needing to rent rather than own property. This high proportion of renters can be indicative of long-term housing pressure, as it suggests a persistent demand for rental properties. It also points to a demographic that may include younger individuals, those with less stable incomes, or people who are renting while saving for a down payment. Regardless of the reason, this trend supports the idea that rental markets in the area will continue to experience steady pressure, likely maintaining current rent levels or pushing them slightly higher.
In summary, ZIP 62565 is characterized by a rental market that is growing, albeit modestly, with demand slightly outweighing supply. The low price-cut share and median home value suggest a healthy residential market, while the substantial renter share indicates ongoing pressure for rental accommodations, making it an attractive investment for landlords and small-portfolio investors alike.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.