Location: Franklin County, IL | Metro: Franklin County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,620 |
| 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)
The ZIP code 62891 is situated in a rural setting with a modest population of 514 residents. The area has a relatively low percentage of renters at 20.0%, indicating a community where homeownership is more prevalent. However, the median income of $27,344 suggests that many residents may face financial constraints, making affordable housing options, such as those supported by Section 8 vouchers, particularly attractive.
Moving into the economic realities of renting in ZIP 62891, the Fair Market Rent (FMR) for the fiscal year 2026 is set at $1,000, which is notably lower than the reported market rent of $1,144 based on Census ACS data. This gap highlights an opportunity for landlords who can provide quality rental units at the FMR rate, potentially attracting tenants who benefit from Section 8 assistance.
For investors considering involvement in ZIP 62891, the choice between being a hands-off voucher operator or a hands-on value-add buyer hinges on several factors. Given the lower median income and the disparity between FMR and market rents, a hands-off approach might be more suitable for those seeking stable, government-backed rental income without the complexities of managing tenant subsidies. On the other hand, a hands-on strategy could yield higher returns for investors willing to manage properties and work closely with Section 8 tenants, ensuring compliance and optimizing property value through maintenance and upgrades.
A hands-off operator should focus on minimizing operational costs and maintaining a low-risk profile, while a value-add buyer must be prepared to invest in improving property conditions and handling the administrative aspects of Section 8 participation. Both approaches have their merits, but the decision should align with the investor's risk tolerance and management capabilities.
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.