Location: Jackson County, IL | Metro: Jackson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase a property in ZIP 62966 (Murphysboro, IL) for Section 8 investment is outlined below.
1) Does FMR $890 (zip FY 2024) clear debt service on a $112,394 property?
Yes: The Fair Market Rent (FMR) of $890 is sufficient to cover the debt service on a property valued at $112,394. Assuming a typical mortgage rate and term, the monthly payment would be lower than the FMR, making the property financially viable for a Section 8 tenant.
No: The FMR of $890 does not cover the debt service on a $112,394 property. This means that the rental income from a Section 8 tenant would not be enough to meet the monthly mortgage obligations. Consequently, investing in this area for Section 8 purposes would not be advisable.
2) Is market rent $803 (Census ACS) above, at, or below FMR?
Above: If the market rent exceeds the FMR, landlords might consider renting to non-Section 8 tenants to maximize their revenue. However, this scenario is unlikely given the FMR of $890 is higher than the market rent of $803.
At: If the market rent equals the FMR, there's no significant financial incentive to choose between Section 8 and market-rate tenants. Given the current data, this situation is also unlikely.
Below: With the market rent at $803, which is below the FMR of $890, landlords can secure higher rental income by participating in the Section 8 program. This makes the property a potentially attractive investment for Section 8 tenants.
3) Are 35.7% renters + N/A-day DOM enough demand?
Yes: If the 35.7% of the population are renters and the days on market (DOM) is low or non-existent, indicating quick property turnover, there is sufficient demand to support a Section 8 investment. Quick turnovers suggest a healthy rental market.
No: If the DOM is high or significantly above average, it implies a slower rental market and less demand. In such a case, even with 35.7% of the population being renters, the demand might not be robust enough to justify a Section 8 investment.
It Depends: Without specific DOM data, it's difficult to make a definitive call. A 35.7% rental rate suggests moderate demand, but the lack of DOM data leaves uncertainty about how quickly properties are rented out. Additional local market research is necessary to clarify this point.
In summary, if the FMR covers debt service and the market rent is below the FMR, a Section 8 investment in Murphysboro, IL is financially sound. The rental rate indicates moderate demand, but the absence of DOM data requires further investigation before a final recommendation can be made.
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.