Location: Scott County, IL | Metro: Morgan County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 62628 in Scott County, Illinois, reveals several key points that are essential for landlords and small-portfolio investors considering the area.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,120, while the current market rent based on Census ACS data stands at $1,075. This indicates that properties can be rented slightly below the FMR, which might help attract tenants but could also mean lower revenue compared to what the FMR suggests is feasible.
Moving on to the affordability of acquisitions, the median home value in ZIP 62628 is $92,572. However, due to the lack of data regarding the number of days on the market (DOM) and the percentage of homes needing price cuts, it's challenging to determine how competitive the market is for property purchases. This ambiguity suggests caution when evaluating the potential for flipping or acquiring new rental properties.
Regarding tenant demand, the total population of ZIP 62628 is 917, with 9.6% of the residents being renters. This relatively low renter share implies that there may not be a strong demand for rental properties, which could affect occupancy rates and the ease of finding tenants.
Verdict: In ZIP 62628, landlords and small-portfolio investors should be aware that while rents are slightly below the FMR, indicating some room for negotiation, the limited data on home acquisition trends poses a risk. Additionally, the low renter share suggests that tenant demand may be weak, potentially leading to challenges in maintaining high occupancy rates. Therefore, the investment climate in this area requires careful consideration and possibly a more conservative approach to ensure financial viability.
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.