Location: Montgomery County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 62572 through the Section 8 program include significant tenant turnover, which can be expected due to the discrepancy between the market rent of $650 and the Fair Market Rent (FMR) of $810 for FY 2024. This gap suggests that tenants might struggle to maintain their housing payments, leading to frequent changes in occupancy. Additionally, the vacancy exposure is a concern, as the Days on Market (DOM) is listed as N/A, indicating either a lack of data or a highly competitive rental market where properties may stay vacant longer than desirable. The typical home value of $143,493 paired with a median income of $92,938 further complicates matters, as it points to a scenario where landlords may face deferred maintenance costs that tenants cannot afford to cover, thereby increasing the financial burden on property owners.
Despite these challenges, the high renter share of 17.3% in ZIP 62572 is a positive indicator. High renter density often translates into higher demand for rental properties, particularly those accepting Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy rates, as there is likely to be a steady stream of potential tenants who qualify for and desire the assistance of Section 8 vouchers.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.