Location: Hardin County, IL | Metro: Gallatin 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 investment landscape for Section 8 properties in ZIP code 62931 presents several challenges that must be carefully considered. Tenant turnover is a significant concern, with the market rent at $246 being notably lower than the Federal Market Rent (FMR) of $920 for fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants who qualify for Section 8 vouchers might have a higher likelihood of moving out when they find housing that better matches their income levels or preferences, leading to frequent changes in occupancy.
Vacancy exposure is another critical issue. The Days on Market (DOM) for this area is listed as N/A, which indicates an incomplete dataset and potentially unreliable information regarding how long properties remain vacant before being rented. Given the limited data available, it's prudent to assume that there could be extended periods of vacancy, especially if the property does not meet the criteria preferred by voucher holders.
Deferred maintenance is a risk factor that cannot be ignored. With a typical home value of $125,651 and a median income of $49,605, homeowners in ZIP 62931 may struggle to keep up with necessary repairs and renovations. This financial strain can lead to substandard living conditions, which are unacceptable under Section 8 requirements, necessitating landlords to invest in maintenance to avoid penalties or loss of tenancy.
Despite these risks, the high renter share of 21.8% in ZIP 62931 points towards a robust demand for rental properties, including those that accept Section 8 vouchers. A larger proportion of renters often translates into a higher number of individuals seeking subsidized housing, which can stabilize the occupancy rate over time. This strong rental market can help mitigate some of the risks associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.