Location: Hamilton County, IL | Metro: Hamilton County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 62859 is based on the significant gap between the Fair Market Rent (FMR) set at $920 for the fiscal year 2026 and the current market rent of $572, according to Census ACS data. This discrepancy amounts to a difference of $348, or approximately 61%, which highlights an opportunity for landlords and small-portfolio investors.
Given that the FMR exceeds the market rent, properties in this area can attract voucher tenants, making it a strategic yield play. The higher FMR means that the government will reimburse landlords at a rate closer to $920 per month, providing a substantial cushion against the actual market rent. This scenario allows investors to achieve a higher rental income compared to what they might receive from non-voucher tenants paying market rates.
The ZIP code 62859 has a renter population of 27.5%, indicating a moderate demand for rental housing. With a median home value of $100,862 and a median income of $54,011, the economic landscape suggests that many residents may rely on housing vouchers to afford living in the area. Landlords who participate in the Section 8 program can benefit from the stability of government-backed payments, which often exceed the local market rates.
To illustrate the financial implications, consider a property rented at the market rate of $572. If the landlord enrolls in Section 8, they could potentially increase their monthly rental income to $920, thereby improving the overall yield of their investment. However, it's crucial to understand that while the FMR is higher, the actual payment received by landlords is the lower of the FMR or the market rent plus a standard utility allowance. Therefore, landlords must be prepared to adjust their rents to align with the market conditions to fully leverage the benefits of the Section 8 program.
In conclusion, the gap between the FMR and market rent in ZIP 62859 presents a clear opportunity for landlords to enhance their investment returns through the Section 8 program. By participating, they can mitigate risks associated with lower market rents and secure a more stable income stream, all while serving a community where the need for affordable housing is evident.
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.