Location: Morgan County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 62638 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1030, while the Census American Community Survey (ACS) reports the market rent at $971. This creates a gap of $59, which translates to approximately a 6.1% difference in favor of the FMR.
Given that the FMR exceeds the market rent, it makes ZIP 62638 a favorable location for landlords and small-portfolio investors looking to maximize yields. Voucher tenants, who benefit from government-subsidized rental assistance, can provide a stable and reliable source of income that is higher than what might be obtained from typical market-rate tenants. The guaranteed nature of these payments, coupled with the lower risk of vacancy, enhances the overall profitability of rental properties in this area.
The context of ZIP 62638 further supports this thesis. With 24.9% of residents being renters, there is a significant demand for affordable housing options. Additionally, the median home value stands at $139,066, indicating a middle-class community where housing costs are manageable but not negligible. The median income of $86,538 suggests that many local residents could benefit from the housing voucher program, thereby increasing the pool of potential Section 8 tenants.
In summary, the $59 gap between the FMR and market rent, representing a 6.1% premium, positions ZIP 62638 as an attractive market for landlords and small-portfolio investors. The stable income from voucher tenants, combined with the local demographics, provides a compelling case for investment in this area.
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.