Location: Marion County, IL | Metro: Clay County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 62838 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $920, while the Census ACS reports the market rent at $793. This creates a gap of $127, or approximately 13.8%, which is significant for landlords and small-portfolio investors.
In this scenario, where the FMR exceeds the market rent, properties in ZIP 62838 become attractive for voucher tenants. The higher FMR means that landlords can potentially receive a rental rate above the local market average when renting to tenants with Section 8 vouchers. This makes the area a strong yield play, especially considering the relatively low percentage of renters at 15.2%. The median home value of $126,056 and median income of $82,976 provide additional context, suggesting that property values are moderate and incomes are sufficient to support the rental market without overburdening tenants.
The discrepancy between the FMR and market rent also implies that landlords who accept Section 8 vouchers will be receiving a rate that is higher than what they might get from non-voucher tenants. This can offset some of the administrative costs associated with participating in the Section 8 program. However, it's important to note that accepting lower rents than the open market could mean leaving money on the table if there is demand for higher rents among other tenants.
To summarize, the gap between the FMR and market rent in ZIP 62838 presents an opportunity for landlords to achieve better yields through Section 8 vouchers, given the specific economic conditions of the area. With only 15.2% of residents being renters, the competition for rental properties is likely to be less intense, making it easier for landlords to fill their units with voucher tenants at a slightly elevated rate. This is particularly beneficial in a region where the median income is $82,976 and the median home value is $126,056, indicating a stable and somewhat affordable housing market.
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.