Location: White County, IL | Metro: White County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The ZIP code 62827, located in Illinois, presents an interesting scenario for both renters and landlords alike. The median income for households in this area stands at $52,550. Given the population of 1,147 and a rental rate of 25.1%, it is crucial to analyze the financial landscape to understand the affordability gap.
Unfortunately, the market rate for rentals in ZIP 62827 is currently marked as N/A, which makes direct comparison challenging. However, we do have the Fair Market Rent (FMR) set at $920 for the metro area for fiscal year 2026. This figure represents the standard payment amount for Section 8 vouchers, indicating the maximum amount that a landlord could receive for renting to a low-income family participating in the program.
To put this into context, a household earning the median income of $52,550 would typically allocate around 30% of their income towards housing costs, according to HUD guidelines. This means they could reasonably afford a monthly rent of approximately $1,314. Since the FMR for the area is $920, it suggests that voucher holders might struggle to find rental properties that fit within their budget, especially if the actual market rates exceed this amount. Landlords who accept vouchers must ensure that their rent does not exceed the FMR, which could limit their options when setting rental prices.
The affordability gap between the median income and the FMR highlights a competitive challenge for landlords. With only 25.1% of the population being renters, the pool of potential tenants is relatively small. Accepting Section 8 vouchers can be seen as a strategy to tap into a segment of the market that might otherwise be overlooked due to higher rents. However, landlords should also consider the cash-paying market, where tenants might be willing to pay above the FMR but still below what the median income suggests they can afford.
Takeaway: For landlords considering their strategy, accepting Section 8 vouchers can be a viable option to secure steady rental income, albeit at a fixed rate of $920. However, given the limited number of renters and the potential for higher-paying tenants, it may also be advantageous to cater to those who can afford to pay more than the voucher rate. Balancing these two approaches will depend on the landlord's goals and the local rental market dynamics.
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.