Location: Macoupin County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
A landlord considering whether to invest in ZIP code 62674 for Section 8 properties should follow this decision tree:
Step 1: Determine if the Fair Market Rent (FMR) of $820 per month can cover the debt service on a property valued at $126,712.
If the monthly debt service is less than $820, then the answer is yes. The FMR would be sufficient to meet financial obligations. However, if the debt service exceeds $820, then the answer is no. In this scenario, the FMR does not provide enough income to support the mortgage payments and other expenses associated with the property.
Step 2: Compare the market rent of $718 per month to the FMR.
The market rent is below the FMR. This means that landlords could potentially charge the higher FMR rate for Section 8 tenants, which would be advantageous financially. However, if the market rent were above or equal to the FMR, the answer would be it depends, as landlords might face challenges renting out their units at a lower rate.
Step 3: Assess the demand for rental properties. In ZIP 62674, 18.1% of residents are renters. The data for days on the market (DOM) is not available, which makes it difficult to gauge how quickly properties are rented out.
Given the 18.1% rental rate, there is moderate demand for rental properties. Without specific DOM data, it's challenging to determine if this demand is strong enough to ensure consistent tenancy. Therefore, the answer is it depends. Landlords need to consider other factors such as the local unemployment rate, population growth, and competition from other rental properties.
To summarize, the decision to buy in ZIP 62674 for Section 8 investment hinges on three key points:
Landlords should conduct thorough due diligence on these factors before making a final decision.
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.