Location: Washington County, IL | Metro: St. Louis, MO-IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $83,193 | 1.15% | B |
| 3BR | $1,250 | $141,384 | 0.88% | C |
| 4BR | $1,550 | $187,538 | 0.83% | C |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP 62801, Centralia, IL, begin with tenant turnover. At a market rent of $795, which is below the Fair Market Rent (FMR) of $900 for fiscal year 2024, landlords might experience higher turnover rates as tenants seek to maximize their housing subsidies. This can lead to frequent vacancies and increased costs associated with finding new tenants and preparing units for occupancy.
Vacancy exposure is another concern. The average Days on Market (DOM) for rental properties in this area is not available, making it difficult to predict how long a property might remain vacant between tenancies. However, given the lower market rent compared to the FMR, there is a risk that properties may stay vacant longer if they do not align with the subsidy levels provided by Section 8.
Deferred maintenance exposure is significant when considering the typical home value of $100,853 and the median income of $52,017. These figures suggest that many homeowners in the area may struggle to afford regular upkeep, potentially leading to properties that require substantial repairs before they can be rented out. Landlords must be prepared to invest in renovations to ensure compliance with housing quality standards set by the Section 8 program.
Despite these risks, the high renter share of 29.8% in ZIP 62801 provides a silver lining. A larger proportion of renters typically translates into higher demand for housing vouchers, which can stabilize occupancy rates and reduce vacancy periods. This demographic characteristic can mitigate some of the financial risks associated with lower rents and higher maintenance needs.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.