Location: Macoupin County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
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 | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $96,330 | 0.97% | C |
| 3BR | $1,130 | $152,565 | 0.74% | D |
| 4BR | $1,420 | $215,228 | 0.66% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 62626, specifically in Carlinville, IL, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 62626 in fiscal year 2024 is set at $980, while the Census ACS data indicates that the average market rent is $824. This creates a gap of $156, or approximately 16%, where landlords can potentially benefit.
In this context, landlords who accept Section 8 vouchers can leverage this gap to increase their yields. Given that the FMR is higher than the market rent, landlords can charge closer to the FMR rate without pricing themselves out of the market. This means they can achieve a higher rental income per unit compared to what the open market would typically bear. For instance, if a landlord charges $980 for a unit that would otherwise rent for $824, they are capturing an additional $156 in rent each month, directly boosting their profitability.
The high FMR relative to the market rent also provides a buffer against the potential challenges of housing voucher tenants. These challenges might include slower lease-up times, increased administrative burden, and the possibility of lower maintenance standards due to budget constraints. However, the yield advantage compensates for these costs, making it a viable strategy for landlords looking to maximize returns.
Carlinville, IL has a rental population of 28.8%, indicating a moderate reliance on rental properties. The median home value stands at $140,905, while the median income is $70,781. These figures suggest that the local economy supports a mix of homeownership and rental markets, but with a slight lean towards rentals given the income levels and the relatively high median home values. Landlords can use this information to tailor their investment strategies, focusing on areas where demand for affordable housing is likely to be higher.
To summarize, the $156 gap between the FMR and market rent in ZIP 62626 presents a clear opportunity for landlords to enhance their yields. By accepting Section 8 vouchers and charging closer to the FMR, landlords can capitalize on this discrepancy, ensuring better financial outcomes for their investments in Carlinville, IL.
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.