Location: Williamson County, IL | Metro: Johnson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 62922 reveals some interesting insights into the potential rental income for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $810 per month for fiscal year 2024, the annualized rent would be $9,720. When compared to the median home value of $196,612, this translates to an implied gross yield of approximately 4.95%. This calculation assumes that the property can be rented out at the FMR rate, which is the maximum amount that Section 8 vouchers will cover.
In contrast, using the market rent figure of $778 per month derived from the Census ACS data, the annualized rent would be $9,336. This scenario implies a gross yield of about 4.75% when considering the same median home value. The difference between these two yields is minimal, but it highlights the importance of understanding the specific rental environment in ZIP 62922.
Given the renter density of 15.4%, it's clear that a significant portion of the population in ZIP 62922 may not be interested in renting properties, which could impact the demand for rental units. However, the presence of Section 8 voucher holders might help stabilize the rental market. The N/A-day DOM (Days on Market) suggests either limited data or a relatively quick turnover in listings, which could indicate strong local demand for housing, though it's difficult to draw firm conclusions without additional context.
Between the two scenarios, the market rent figure of $778 per month is likely more realistic for most investors. While the FMR of $810 per month represents a theoretical upper limit for Section 8 rentals, the actual market conditions and competition may push rents closer to the lower market rate. This means that the gross yield of 4.75% should be considered a more practical benchmark for investment decisions in this area.
Investors should also consider the stability and security that comes with Section 8 tenancy. Although the gross yield is slightly lower than what might be achievable under ideal conditions, the consistent rental income and reduced vacancy risk can outweigh the lower yield for many investors seeking stable returns.
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.