Location: Gallatin County, IL | Metro: Gallatin County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,170 |
| 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 Section 8 cap rate analysis for ZIP code 62954 provides insight into the potential returns for landlords and small-portfolio investors. Given the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $940 for fiscal year 2026, and the median home value being currently unavailable, we can still derive some useful metrics.
In the scenario where the FMR of $940 is used, the annual rental income would be $11,280. This figure assumes a consistent occupancy rate throughout the year, which is not always guaranteed. However, it serves as a baseline for calculating the implied gross yield. With the median home value also being N/A, we cannot directly calculate the gross yield percentage. But if we hypothetically consider a median home value, say $150,000 for illustration purposes, the gross yield would be approximately 7.52% ($11,280 / $150,000).
The market rent is listed as N/A, which means there isn't sufficient data to provide an accurate comparison against the FMR scenario. However, in general, market rents tend to be higher than FMRs, which could potentially increase the gross yield. Without specific market rent figures, it's challenging to quantify this difference accurately.
The renter density in ZIP 62954 stands at 7.4%, indicating that a relatively low proportion of residents are renters. This statistic suggests that the demand for rental properties, including those under the Section 8 program, might be limited. Additionally, the Days on Market (DOM) is listed as N/A, which means we lack recent transactional data to gauge how quickly homes are selling. This absence of information makes it difficult to assess the liquidity and turnover rates of properties in the area.
Given the available data, the FMR-based scenario presents a clearer picture for investors. The implied gross yield of 7.52%, based on our hypothetical median home value, is a reasonable starting point for evaluating the investment potential. However, the actual gross yield could vary depending on the true market conditions and median home values. The lower renter density points towards a less favorable rental market, which could affect occupancy rates and thus the overall yield. Therefore, while the FMR scenario offers a tangible benchmark, investors should exercise caution and seek additional local market insights before making investment decisions.
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.