Location: Scott County, IL | Metro: Morgan County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 62650 presents several challenges that must be carefully considered. Tenant turnover is a significant risk, with the market rent at $710 falling below the Fair Market Rent (FMR) of $920 for the fiscal year 2026 in the metropolitan area. This disparity suggests that tenants may leave for higher-paying jobs or better housing opportunities, leading to frequent vacancies.
Vacancy exposure is another concern, especially given the average days on market (DOM) of 45 days. This short period indicates that while the property might fill quickly, it also suggests a competitive rental market where properties can remain vacant longer if they do not meet the expectations of potential tenants. Landlords must be prepared to handle these periods without rental income.
Deferred maintenance poses an additional threat. With a typical home value of $136,111 and a median income of $65,762, many homeowners may struggle to keep up with necessary repairs and upgrades, which can affect property values and the overall appeal to tenants. The financial strain on residents due to the relatively low median income compared to the cost of living could exacerbate this issue.
However, these risks are balanced by the high concentration of renters in the area. With 31.3% of the population being renters, there is likely a strong demand for Section 8 vouchers. This high renter share can provide a steady stream of potential tenants who qualify for the program, mitigating some of the turnover and vacancy risks.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 62650 is moderate. While there are notable challenges, the high renter share offers a counterbalance that can support stable occupancy rates and long-term 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.