Location: White County, IL | Metro: Edwards County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 62844 for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $920 cover the debt service on a property valued at $77,802?
Yes. The FMR of $920 is sufficient to clear the debt service on a property valued at $77,802. This means that the rental income will be enough to cover the mortgage payments and other expenses associated with owning the property. Landlords can expect to break even or make a profit if they manage their costs effectively.
No. If the FMR of $920 does not cover the debt service on a property valued at $77,802, then the investment is not financially viable under Section 8. The rental income would fall short of covering the mortgage and operational costs, leading to financial losses.
2) Is the market rent of $646 above, at, or below the FMR?
Above. If the market rent were above the FMR, it would indicate that the property could potentially command higher rents than what the Section 8 program allows. In this case, landlords might consider renting outside of the Section 8 program to maximize income.
At. Since the market rent of $646 is below the FMR of $920, this scenario does not apply. However, if the market rent equaled the FMR, landlords would be indifferent between market and Section 8 rents, making the decision about participation in the program more dependent on other factors such as tenant stability.
Below. The market rent of $646 is below the FMR of $920. This suggests that landlords participating in the Section 8 program could potentially receive higher rents compared to the general market. This makes the program attractive for those looking to ensure stable income.
3) Are 27.3% of residents renters and is the N/A-day Days on Market (DOM) indicative of sufficient demand?
Yes. With 27.3% of residents being renters, there is a notable portion of the population who seek housing through rental options. However, the lack of data on DOM indicates an incomplete picture. Assuming the DOM is reasonable, the high percentage of renters supports the idea that there is enough demand to sustain a Section 8 property.
No. If the DOM were excessively long, it would suggest low demand for rental properties, making it harder to find tenants willing to pay the FMR. Without this data point, landlords cannot fully assess the market's readiness to absorb Section 8 properties.
It Depends. The 27.3% of residents being renters is a positive sign for demand, but the absence of DOM data leaves uncertainty. Landlords must gather additional local market insights to determine if the demand is robust enough to support a Section 8 investment.
Based on the available data, if the FMR of $920 covers the debt service on a property valued at $77,802 and the DOM is reasonable, then the answer is yes. Landlords can proceed with confidence knowing that they will receive a stable rental income that exceeds the current market rates. If either condition is not met, further analysis is required before making a decision.
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.