Location: Decatur, IL | Metro: Decatur, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The ZIP code 62573 presents an interesting balance between yield and stability, making it a viable option for both high-yield seekers and those looking for steady cash flow.
Starting with yield, the Fair Market Rent (FMR) for the fiscal year 2024 in ZIP 62573 is set at $810. This is slightly above the market rent of $804, indicating a modest premium that landlords can charge. Given the median home value of $161,401, the FMR suggests a reasonable rental income relative to property costs. For example, a landlord could expect to generate approximately $9,720 annually from a single unit, assuming full occupancy throughout the year.
Moving on to stability, the ZIP code has a relatively low percentage of renters at 24.1%. This figure is important because it indicates the proportion of residents who are likely to be tenants. A lower percentage of renters might suggest higher turnover rates and less predictable cash flow. However, the average daily days on market (DOM) data is not available, which would have been useful for assessing how quickly properties can be rented out. The median household income of $94,583 provides some assurance regarding the financial stability of potential tenants, though it does not directly correlate with their ability to pay rent.
To classify this ZIP code, it falls into a middle ground rather than being clearly defined as either a high-yield/low-stability market or a steady-cashflow zone. The slight premium on FMR over market rent points towards a moderate yield opportunity. The lower renter percentage and lack of DOM data hint at less stability compared to areas with higher renter populations and quicker rental turnovers. However, the decent median income offers some security that tenants will be able to afford rent, mitigating risk somewhat.
In conclusion, ZIP 62573 is best described as a moderate-yield market with some stability concerns, suitable for landlords willing to manage potentially higher vacancy rates but still expecting a reasonable return on investment.
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.