Location: Union County, IL | Metro: Union County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 62906 in Union County, Illinois, reveals several key points that are crucial for landlords and small-portfolio investors considering investment in this area.
Firstly, regarding the rent math, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960. However, the current market rent, as per Census ACS data, stands at $634. This indicates a significant disparity where the FMR exceeds the market rent by $326, suggesting that relying solely on Section 8 vouchers might not be financially viable for landlords without additional subsidies or adjustments.
Secondly, the acquisition cost in ZIP 62906 is centered around a median home value of $136,986. With no available data on days on market (DOM) and a negligible 0.1% share of homes that have had their prices cut, it appears that the housing market is stable. This stability could indicate that acquiring properties at or near the median value is feasible, although the lack of DOM data makes it difficult to assess the speed of property sales.
Lastly, concerning tenant demand, the population of ZIP 62906 is 7,329, with 31.9% of residents being renters. This suggests a moderate tenant base, indicating that there is a reasonable pool of potential Section 8 tenants. However, the relatively low percentage of renters might limit the number of eligible applicants compared to areas with higher rental populations.
In conclusion, while there is a moderate tenant demand in ZIP 62906, the current market rent is significantly lower than the FMR, which poses a challenge for landlords. The stable housing market suggests that acquisitions are affordable, but the financial viability of renting properties at the FMR level without additional support is questionable. Landlords should carefully consider these factors before investing in this ZIP code.
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.