Location: Perry County, IL | Metro: Jackson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 62832 reveals a unique balance between yield potential and market stability. With a Fair Market Rent (FMR) of $850 for fiscal year 2024, compared to the local market rent of $731, there is a clear opportunity for higher rental yields. The FMR is set by HUD to reflect the average market rent for decent, safe, and sanitary housing, and it is used to determine payment standards for Section 8 vouchers. Landlords can expect to charge closer to the FMR if they offer quality properties, thus increasing their cash flow.
The median home value in ZIP 62832 is $95,753. This figure suggests that the area is relatively affordable, which could attract first-time buyers and investors looking for low-cost entry points. However, it also indicates that property values may not appreciate as quickly as in more expensive markets, which could affect long-term investment strategies.
Moving onto stability, the ZIP code has a renter population of 26.3%. While this percentage is lower than some highly rented areas, it still represents a significant portion of the market. The median household income is $59,652, which provides insight into the financial capability of potential tenants. Given the income level and the disparity between market rent and FMR, landlords should ensure that their properties meet a certain standard to command the higher rent.
The absence of data on days on market (DOM) makes it difficult to assess the speed at which properties are rented out. However, the combination of a moderate renter population and a lower median home value suggests a market that leans towards steady cash flow rather than high-yield, low-stability flips. The higher FMR compared to market rent offers an advantage for those who can maintain property quality, but the overall environment does not support rapid turnover or speculative flipping due to the lack of strong appreciation potential and limited data on tenant demand dynamics.
In conclusion, ZIP 62832 presents itself as a middle-ground market. It offers reasonable yield opportunities through higher-than-market rents, but the stability indicators suggest a more conservative approach is advisable. Small-portfolio investors and landlords should focus on maintaining properties to attract the higher-paying tenants and anticipate a slower pace of market activity.
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.