Location: Williamson County, IL | Metro: Williamson County, IL
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $208,894 | 0.61% | D |
| 4BR | $1,290 | $300,374 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 62959 reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1010 for fiscal year 2024, is $10 above the current market rent indicated by the Zillow Observed Rent Index (ZORI), which stands at $1000. This represents a 1% premium that voucher holders can pay over the open-market rate.
This slight gap makes ZIP 62959 a yield play for landlords who accept Section 8 vouchers. The 29.0% of renters in the area, combined with a median home value of $172,603 and a median income of $71,063, suggests that there is a substantial demand for affordable rental properties. Landlords can leverage this demand to achieve a slightly higher rental yield without exceeding the local market rent.
Accepting Section 8 tenants can also provide financial stability, as rental payments are guaranteed through government subsidies. This ensures a steady cash flow, which is particularly beneficial in an environment where market rents might fluctuate. Moreover, the subsidy structure allows landlords to receive the full FMR amount, even if it's only marginally above the market rate, making it a smart investment strategy for those looking to maximize their returns while serving a need in the community.
However, it's important to note that while the FMR is slightly higher than the market rent, the overall cost of maintaining properties for voucher tenants must be considered. Landlords should be prepared to meet certain housing quality standards set by the Department of Housing and Urban Development (HUD) to remain eligible for the program. These standards ensure that the homes are safe and habitable but can sometimes require additional maintenance and compliance efforts.
In conclusion, the 1% premium in FMR over the ZORI in ZIP 62959 presents a compelling case for landlords and small-portfolio investors to consider accepting Section 8 tenants. This can lead to a modest increase in rental yields, coupled with the security of guaranteed payments, making it a strategic move in the current rental landscape.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.