Location: Macoupin County, IL | Metro: Macoupin County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 62685, located in Macoupin County, IL, presents a unique opportunity for investors. The HUD Fair Market Rent (FMR) for this area is set at $810 per month for the fiscal year 2024. In contrast, the Census American Community Survey (ACS) reports an average market rent of $313 for the same period. This significant disparity indicates that voucher tenants will cashflow substantially when renting at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in ZIP 62685, which stands at $159,027. Using the HUD FMR of $810, we can calculate a monthly rent-to-price ratio of approximately 0.51%. This ratio suggests that rental income generated by voucher tenants can be highly profitable relative to property values. For instance, a property purchased at the median value would generate a monthly rental income that represents less than 1% of the total purchase price, indicating strong financial returns.
While the data does not provide specific details on the median days on market (DOM) or the percentage of price cuts, these metrics typically influence the rent-versus-buy decision-making process for potential homeowners. However, given the low market rent compared to the HUD FMR, it's likely that the rental market remains attractive even if there are some fluctuations in the housing market.
The strongest investor angle in ZIP 62685 is undoubtedly cashflow. With the HUD FMR significantly exceeding the market rent, landlords and small-portfolio investors can expect robust cash-on-cash returns from properties rented to voucher holders. This makes the area particularly appealing for those seeking steady, reliable income streams through rental investments.
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.