Location: Scott County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The median income in ZIP code 62668 stands at $70,577, while the market rate for rent is $796 according to the latest Census ACS data. This suggests that the average household income in the area is not sufficient to cover the market rate rent without significant financial strain. The Family Monthly Income (FMI) guidelines indicate that a household should spend no more than 30% of their income on housing to be considered affordable. At $796 per month, a household would need to allocate nearly 32% of their income towards rent, which exceeds the recommended threshold.
Moreover, the voucher payment standard for Fair Market Rent (FMR) in ZIP 62668 for fiscal year 2024 is set at $940. This means that for landlords accepting vouchers, they would receive a higher payment than the current market rate, but it also implies that the gap between the market rate and the voucher amount is quite substantial. With only 13.7% of the 1,249 population being renters, the competition among landlords for tenants is likely to be intense, especially when considering the limited number of potential renters in the area.
The affordability gap is significant, as the market rate rent already exceeds the 30% affordability threshold based on median income. For those relying solely on market rate rents, the challenge will be attracting tenants who can afford these rates or finding ways to lower rental costs to match the income levels of residents. On the other hand, landlords who accept vouchers will have access to a government-backed payment that covers a higher portion of the rent, making it easier to secure tenants despite the overall income levels in the area.
Landlords should consider the benefits of accepting vouchers, particularly given the higher payment compared to the market rate. While it may seem attractive to focus on cash-paying tenants due to the perception of fewer administrative hurdles, the reality is that there may not be enough financially capable households to sustain a portfolio relying exclusively on market-rate rents. Accepting vouchers can provide a stable source of income and help fill units that might otherwise remain vacant due to the high cost of rent relative to local incomes.
In conclusion, landlords in ZIP 62668 must weigh the advantages of voucher programs against the challenges of competing in a tight rental market. Given the data, the strategy of accepting vouchers appears to offer a more sustainable path to filling units and maintaining steady income flows.
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.