Location: Marion County, IL | Metro: Marion County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The analysis of ZIP Code 62849, specifically in Iuka, IL, reveals a significant gap between the Fair Market Rent (FMR) set at $920 and the actual market rent of $678. This difference amounts to $242, representing a 35.5% increase over the market rent. Given these figures, it is clear that voucher tenants can make this area a yield play for landlords and small-portfolio investors.
In the broader context of Iuka, IL, the rental market stands at 9.9% of the total population being renters. The median home value in the area is $178,499, while the median household income is $60,789. These factors indicate that the rental market is relatively affordable compared to homeownership, making it an attractive option for voucher recipients who might otherwise struggle to find housing within their budget.
The discrepancy between the FMR and market rent presents an opportunity for landlords. By accepting Section 8 vouchers, they can charge closer to the FMR rate of $920, which is above the current market rate. This higher rental income can improve the yield on investment properties, especially when considering the relatively low median home value and median income in the area.
However, landlords should be aware that the cost of maintaining properties for voucher tenants may be higher than renting to those paying market rates. The additional administrative burden and potential for longer lease terms could affect overall profitability. Nonetheless, the financial benefits of charging closer to the FMR rate outweigh these considerations, making ZIP Code 62849 a favorable location for landlords looking to maximize returns through the Section 8 program.
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.