Location: Wayne County, IL | Metro: Hamilton County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The ZIP code 62895 is situated in a small-town setting with a total population of 1,960. The area has a relatively low percentage of renters at 20.7%, indicating that homeownership is prevalent among residents. With a median household income of $51,131, it suggests that while the community isn't affluent, it's also not struggling financially. The median home value stands at $119,968, which aligns well with the modest economic profile of the region.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,040. However, the actual market rent, according to Census ACS data, is significantly lower at $688. This discrepancy between the FMR and the market rent presents an opportunity for Section 8 investors. Landlords can potentially receive higher rents through the voucher program compared to what they might earn from traditional market tenants.
Given these conditions, ZIP 62895 is more suited for a hands-off voucher operator rather than a hands-on value-add buyer. The lower percentage of renters and the modest median income suggest that there is limited potential for increasing property values through extensive renovations or upgrades. Instead, leveraging the Section 8 housing choice voucher program would allow investors to capitalize on the difference between the FMR and the current market rent, providing a steady and predictable income stream without the need for significant property management efforts.
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.