Location: Washington County, IL | Metro: Washington County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 62848 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,030, while the market rent based on Census ACS data stands at $832. This creates a gap of $198, or approximately 23.8%, between what landlords can charge through Section 8 vouchers and the prevailing market rates.
Given that the FMR exceeds the market rent, it makes ZIP 62848 an attractive yield play for voucher tenants. Landlords who accept Section 8 vouchers can potentially command rents above the market average without significantly increasing their costs. This scenario benefits landlords by providing a higher rental income compared to what they might receive from non-voucher tenants paying market rates.
The context of the ZIP code further supports this thesis. With 15.5% of residents being renters and a median household income of $80,156, there is a notable demand for affordable housing options. The lack of data on median home values suggests a focus on rental properties rather than homeownership, which aligns with the opportunity presented by Section 8 vouchers.
Landlords should be aware that while the FMR allows for higher rents, the actual payment comes from the Housing Choice Voucher program, which covers the difference between the tenant's contribution (typically 30% of their income) and the rent. In ZIP 62848, this means landlords can secure rental income closer to the FMR level, enhancing their yield, despite the market rent being lower.
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.