Location: Hardin County, IL | Metro: Hardin County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate scenario for ZIP code 62919 reveals interesting insights into potential investment yields. Based on the Fair Market Rent (FMR) for a two-bedroom apartment at $920 per month for fiscal year 2026, the annualized figure would be $11,040. Using the median home value of $96,679 in this area, the implied gross yield for a Section 8 property would be approximately 11.42%. This calculation is derived from dividing the annual rental income by the median home value.
In contrast, the market rent for a two-bedroom apartment stands at $490 per month according to Census ACS data. When annualized, this equates to $5,880. Given the same median home value of $96,679, the implied gross yield under market conditions would be around 6.08%. The disparity between these two yields highlights the financial advantage of participating in the Section 8 program over renting at market rates.
However, the reality of investment in ZIP 62919 must also consider the local rental market dynamics. With a renter density of 14.9%, the demand for rental properties, including those in the Section 8 program, is relatively low. This suggests that while the theoretical gross yield from Section 8 participation is higher, achieving it consistently may be challenging due to limited rental demand. The absence of specific days on the market (DOM) data further complicates the assessment of how quickly a property might be leased under either scenario.
To conclude, the gross yield from Section 8 participation at 11.42% is significantly higher than the market yield of 6.08%. Yet, the feasibility of attaining this higher yield depends heavily on the local rental environment, particularly the low renter density. Landlords and small-portfolio investors should weigh these factors carefully before making investment decisions in ZIP 62919.
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.