Location: Wayne County, IL | Metro: Wayne County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The ZIP code 62886 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $691 falling well below the Fair Market Rent (FMR) of $980 for fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants might seek higher-rent properties, leading to increased churn rates and potential difficulties in maintaining steady occupancy.
Vacancy exposure is another critical issue. The days on market (DOM) data is currently unavailable, which makes it difficult to predict how long it might take to fill vacancies. In a competitive rental market, landlords must be prepared for periods of vacancy, especially when dealing with government-subsidized housing programs where the process can be slower due to bureaucratic delays.
The deferred maintenance exposure is also notable. The typical home value data is missing, but the median income in the area stands at $61,250. This figure indicates that residents might struggle to afford significant repairs or upgrades, potentially leaving landlords responsible for covering these costs without the ability to raise rents proportionally. Such financial obligations can strain an investor's budget, particularly if they have a small portfolio.
However, there are mitigating factors to consider. The renter share in ZIP 62886 is 14.1%, which is relatively high. High renter density often correlates with greater demand for housing vouchers, providing a stable tenant base and consistent rental income. Landlords can leverage this demand to ensure their properties remain occupied, even if they face some of the aforementioned challenges.
In conclusion, despite the risks associated with tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 62886 suggests a moderate risk for a first-time Section 8 landlord. The demand for affordable housing provides a buffer against some of the potential pitfalls, but careful management and preparation for financial contingencies are essential.
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.