Location: Franklin County, IL | Metro: Franklin County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $670 |
| 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)
A skeptical investor considering ZIP 62983 might raise several concerns regarding the viability of the area for Section 8 investments. Let's address these objections head-on with the available data.
The median home value in ZIP 62983 is $65,721, which is relatively low compared to the national average. Assuming an average mortgage rate of around 4%, the monthly mortgage payment for a $65,721 home would be approximately $320. With an FMR of $950, landlords can expect a substantial margin above their mortgage payments, ensuring financial stability even without accounting for other expenses such as property taxes, insurance, and maintenance.
The percentage of renters in ZIP 62983 stands at 24.9%. While this figure is lower than the national average, it does indicate a significant portion of the population relies on rental housing. The demand for affordable housing remains consistent, especially for those eligible for Section 8 assistance. This suggests that while competition among landlords might exist, there is still a viable market for Section 8 properties.
The current market rent in ZIP 62983 is $906. The FMR set at $950 for the metro area in fiscal year 2026 provides a buffer above the actual market rent. However, whether voucher amounts will keep up with inflation and rising costs is uncertain based on the provided data. It's crucial for investors to monitor any adjustments made to voucher amounts over time to ensure they remain competitive and cover operational costs effectively.
In summary, ZIP 62983 presents a mix of favorable and cautionary conditions for Section 8 investment. The low median home value and reasonable FMR suggest manageable mortgage payments, while the percentage of renters indicates a steady demand. However, the future alignment of voucher amounts with market rents requires ongoing attention to maintain profitability.
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.