Location: Logan County, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 62613 centers around the disparity between the Fair Market Rent (FMR) set at $1100 for fiscal year 2024 and the actual market rent of $914, according to the latest Census American Community Survey (ACS) data. This creates a gap of $186, representing a 20.35% difference in favor of the FMR.
This gap means that landlords and small-portfolio investors can potentially benefit from accepting Section 8 tenants. The higher FMR allows property owners to charge more than what the open market would bear, thus increasing their rental income without the risk of vacancy. In ZIP 62613, where only 18.8% of residents are renters, the demand for affordable housing can be met without significantly impacting the overall rental market.
The median home value in this area is $214,750, which is indicative of a moderate housing market. With a median household income of $86,675, many residents may find it challenging to afford homes at the median value, making the Section 8 program an attractive option for both tenants and landlords.
Accepting Section 8 tenants at the FMR rate of $1100 ensures a steady stream of income that exceeds the current market rent of $914. This strategy transforms the investment into a yield play, as the guaranteed higher rental income compensates for any perceived risks associated with voucher tenants. The government's commitment to covering the difference between the FMR and the tenant's contribution makes this a reliable source of income for landlords.
In conclusion, the gap between the FMR and market rent in ZIP 62613 presents an opportunity for landlords to increase their rental yields by participating in the Section 8 program. The data supports the notion that this can be done without overpricing the units relative to the local rental market, thereby attracting tenants who need affordable housing options.
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.