Location: Williamson County, IL | Metro: Williamson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 62974 is based on the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1130, while the Census American Community Survey (ACS) indicates that the average market rent is $956. This represents a difference of $174 per month, or approximately 18.6%, where the FMR exceeds the market rent.
This gap makes ZIP 62974 a prime location for a yield play strategy for landlords and small-portfolio investors. Given that the FMR is higher than the market rent, landlords can potentially earn more by participating in the Housing Choice Voucher program, commonly known as Section 8. The government will pay the higher FMR rate, which allows landlords to charge above the local market average without overpricing their units.
In ZIP 62974, only 17.0% of residents are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. The median home value stands at $151,145, while the median income is $64,107. These figures suggest that homeownership is affordable for many residents, but those who do rent may benefit from the lower market rents.
For investors, the key advantage lies in the ability to leverage the higher FMR payments to increase cash flow. Since voucher holders are guaranteed a certain level of housing assistance, landlords can secure long-term, stable tenancy and receive consistent rental income that exceeds the local market rates. This makes the ZIP code an attractive area for those looking to maximize returns on their investment properties through the Section 8 program.
However, it's important to note that accepting Section 8 tenants comes with its own set of considerations. Landlords must adhere to federal guidelines regarding property condition and maintenance, which can incur additional costs. Nonetheless, the potential for increased monthly rental income, coupled with the stability provided by the government-backed vouchers, outweighs these costs in many scenarios.
To summarize, the disparity between the FMR and market rent in ZIP 62974 presents a unique opportunity for landlords and small-portfolio investors to enhance their yields through the Section 8 program. With a 18.6% premium over market rates, this ZIP code offers a compelling case for maximizing rental income while providing affordable housing options for eligible tenants.
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.