Location: Jefferson County, IL | Metro: Jefferson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 62894 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $920 per month for fiscal year 2026. This figure is higher than the local market rent, which according to the Census ACS, averages at $671 for the same type of unit. Let's break down what this means for landlords and small-portfolio investors.
A Section 8 voucher is designed to cover the difference between what a low-income tenant can afford and the actual rent. For ZIP 62894, the SAFMR ensures that the reimbursement rate is tailored specifically to this area, reflecting the local housing costs accurately. The voucher payment consists of two parts: the tenant contribution and the utility allowance, both of which must be considered when calculating the total reimbursement.
Tenants are expected to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500, the tenant would contribute approximately $450 per month. The utility allowance varies but typically ranges from $200 to $300 for a two-bedroom unit. Therefore, if the SAFMR is $920, the total voucher payment would be around $650 to $750 per month ($450 tenant contribution + $200-$300 utility allowance).
This calculation leaves a potential surplus for landlords. Given the SAFMR of $920 and a typical local market rent of $671, landlords could expect to receive about $249 to $349 above the local market rate, assuming the tenant's portion and utility allowance sum up to $650 to $750. This surplus provides a financial cushion that can help offset maintenance costs and other expenses associated with property management.
In summary, landlords in ZIP 62894 participating in the Section 8 program can expect a reimbursement rate of $920 for a two-bedroom unit, which is significantly higher than the local market rent of $671. Once the tenant contribution and utility allowance are factored in, landlords will generally see a surplus of $249 to $349 per month, making it a financially viable option for those willing to participate in the 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.