Location: Saline County, IL | Metro: Hamilton County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 62935 in relation to Section 8 properties reveals several critical factors that could impact the profitability and stability of such an investment. First, tenant turnover is a significant concern. At a market rent of $961, compared to the Federal Market Rent (FMR) of $1,030 for the metro area in FY 2026, landlords might experience higher turnover rates as tenants seek more affordable housing options. This discrepancy between market rent and FMR can lead to frequent vacancies and the associated costs of re-leasing units.
Vacancy exposure is another issue to consider. The days on market (DOM) for vacant properties in this ZIP code is not available, which suggests a lack of data on how quickly properties are rented out. This uncertainty can be problematic for landlords relying on steady rental income. High vacancy periods can result in lost revenue and increased expenses for marketing and maintenance to attract new tenants.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $125,062 and a median income of $60,238, there is a risk that homeowners may delay necessary repairs due to financial constraints. This can affect the overall condition of the property and the comfort of the tenants, potentially leading to complaints and reduced satisfaction levels.
However, these risks must be weighed against the high renter density in the area. A 16.4% renter share indicates a robust demand for rental properties, which typically translates into a higher demand for Section 8 vouchers. This can provide a stable source of tenants who are committed to paying their rent through government assistance, reducing the likelihood of prolonged vacancies and ensuring a steady cash flow.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 62935 is moderate. While there are significant challenges related to tenant turnover and deferred maintenance, the high renter density offers a counterbalance by ensuring a consistent pool of potential tenants. Landlords should prepare for the possibility of higher turnover rates but can expect a reliable stream of rental income from the demand for Section 8 housing.
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.