Location: Jackson County, IL | Metro: Jackson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 62994 reveals a unique balance between yield potential and market stability, making it an intriguing option for both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 stands at $850, while the current market rent is $950. This indicates that there is a modest premium over the FMR, suggesting a slight advantage for landlords who can command higher rents in the area.
The median home value in ZIP 62994 is $114,159, which is significantly lower than the market rent figure. This discrepancy highlights a high-yield potential for rental properties, as the cost of acquiring a property is relatively low compared to the income it can generate. Specifically, with a median home value of $114,159 and a market rent of $950, the annual gross rental income would be approximately $11,400, leading to a yield ratio of about 10.0%, assuming no mortgage payments. This makes the area attractive for investors looking to maximize returns through rental income.
However, the stability of the market is a different story. With only 20.0% of residents being renters, the demand for rental properties is relatively low. Additionally, the lack of data on the number of days on market (DOM) suggests that there might be limited turnover in rental units, which could indicate either strong tenant retention or a slow-moving market. The average household income of $64,773 provides some insight into the economic stability of the area, but without more detailed metrics such as employment rates or job market diversity, it's challenging to fully assess the stability.
Given these figures, ZIP 62994 leans towards being a high-yield market due to the favorable rent-to-property-value ratio. However, the low percentage of renters and the incomplete data on market dynamics suggest a moderate level of stability. This combination places the area closer to a flip-style market where quick returns are possible, but long-term cash flow consistency may be less reliable compared to a steady-cashflow zone. Investors should consider diversifying their portfolio or having a strategic exit plan when engaging in this ZIP code.
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.