Location: Logan County, IL | Metro: Logan County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $670 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 62656 highlights several potential issues that landlords should consider before engaging with Section 8 tenants. Firstly, tenant turnover could be problematic due to the discrepancy between the market rent of $830 and the Fair Market Rent (FMR) of $990 for fiscal year 2026 in the metropolitan area. This difference suggests that landlords might face challenges in retaining tenants who are accustomed to the lower market rent.
Vacancy exposure is another significant risk factor. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long properties might remain vacant between tenants. Vacancies can lead to financial losses and increased management costs, especially when dealing with the specific requirements of Section 8 housing.
Deferred maintenance poses a substantial threat, particularly considering the typical home value of $130,417 and the median income of $62,017. Lower incomes may limit the ability of Section 8 tenants to contribute to the upkeep of their homes, potentially leaving landlords responsible for significant repair costs. These expenses can erode profit margins and require careful budgeting to avoid financial strain.
However, these risks must be weighed against the high renter density in ZIP 62656, where 38.2% of residents are renters. High renter density typically correlates with higher demand for rental vouchers, which can stabilize occupancy rates and provide a steady stream of income through government subsidies. The presence of many renters increases the likelihood of finding qualified Section 8 tenants, thereby mitigating some of the risks associated with vacancy and turnover.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 62656 is moderate. While there are notable challenges, such as tenant turnover and deferred maintenance, the high renter share provides a buffer against prolonged vacancies and offers opportunities for stable, government-backed rental income.
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.