Location: Perry County, IL | Metro: Perry County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 62888 for Section 8 properties, follow these steps:
Step 1: Clearing Debt Service
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $1,070. To determine if this clears the debt service on a property valued at $110,667, calculate the expected monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment would be approximately $575. With FMR at $1,070, the difference of $495 per month can cover other expenses such as maintenance, insurance, and property taxes. Therefore, the answer to the first question is yes.
Step 2: Market Rent Comparison
The Census American Community Survey (ACS) reports that the market rent in ZIP 62888 is $835. This figure is below the FMR of $1,070. Landlords who can secure Section 8 tenants will benefit from higher rents compared to the general market. Thus, the answer to the second question is that market rent is below FMR, which is favorable for Section 8 investment.
Step 3: Rental Demand Assessment
In ZIP 62888, 11.0% of the population are renters. However, the data does not provide days on the market (DOM) information, making it difficult to assess the speed at which rental units are filled. Given the limited information, the answer to the third question is it depends. A higher percentage of renters suggests potential demand, but without knowing how quickly units turn over, it's challenging to gauge the stability of rental income.
Decision Tree Summary
Final Recommendation
ZIP 62888 shows potential for Section 8 investments due to the favorable gap between FMR and market rent. However, the lack of DOM data introduces uncertainty regarding the speed of tenant turnover. Landlords should conduct additional local market analysis to confirm the demand and stability of rental income before proceeding with a purchase.
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.