Location: Logan County, IL | Metro: Logan County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,220 |
| 5 Bedrooms | $1,415 |
| 6 Bedrooms | $1,585 |
| 7 Bedrooms | $1,712 |
| 8 Bedrooms | $1,798 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 62634 might raise several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here's how the data addresses these objections:
Objection 1: Will Fair Market Rent (FMR) of $930 (metro FY 2026) cover the mortgage on a $167,569 home?
The FMR of $930 in ZIP 62634 does not fully cover the mortgage payment on a home valued at $167,569. Based on current interest rates, a mortgage payment for a property of this value could easily exceed $930 per month. This means that landlords will need to rely on other sources of income or have a reserve to make up the difference between the FMR and the actual mortgage payment.
Objection 2: Is there enough renter demand at 23.2%?
The percentage of renter-occupied units at 23.2% suggests a relatively low demand for rentals compared to owner-occupied homes. However, this figure alone does not provide a complete picture of the rental market dynamics. To accurately assess the demand, one would need additional data such as vacancy rates, average rental duration, and the number of available rental units versus the number of renters. The data currently provided does not offer this level of detail.
Objection 3: Will vouchers keep pace with market rents of $775?
The market rent of $775 in ZIP 62634 is lower than the FMR of $930, indicating that vouchers may indeed help cover the cost of renting. However, whether vouchers will keep pace with future increases in market rents depends on the rate of inflation and the adjustments made to voucher amounts by HUD. The data does not specify the rate of increase for voucher amounts, so it's uncertain if they will consistently match or exceed the growth in market rents. Landlords should monitor HUD announcements and local housing authority updates to stay informed on any changes to voucher policies.
In summary, while the FMR provides a benchmark for rental pricing, it may not be sufficient to cover the mortgage on a home valued at $167,569. The renter demand at 23.2% indicates a smaller market, but further analysis is required to determine the actual competition and occupancy rates. Lastly, vouchers can support current market rents of $775, but their ability to keep pace with future increases remains to be seen.
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.