Location: Union County, IL | Metro: Union County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 62998 focuses on the implications of Section 8 rental assistance and market rents on the potential gross yield for landlords and small-portfolio investors.
For the Section 8 scenario, the Fair Market Rent (FMR) for a 2-bedroom unit in fiscal year 2026 is set at $970. This figure represents the annualized rental income that a landlord could expect per month from a tenant receiving Section 8 assistance. However, the median home value for ZIP 62998 is not available, making it difficult to calculate an exact cap rate. Nevertheless, we can still discuss the gross yield. If we assume a property value based on typical cap rates in similar areas, a gross yield can be inferred. For instance, if we take a conservative cap rate of 5%, the implied property value would be around $256,800 ($970 * 12 / 0.05), leading to a gross yield of 4.6%. A more aggressive cap rate of 7% would imply a property value of approximately $171,429, resulting in a gross yield of 6.9%.
In terms of market rent, the data indicates that the figure is not available. This absence means we cannot directly compare the gross yields between Section 8 and market rents. However, the lack of market rent data does not diminish the importance of understanding the implications of the Section 8 program in ZIP 62998.
The renter density stands at 14.0%, which suggests a moderate level of demand for rental properties. The Days on Market (DOM) is also not specified, but generally, a lower DOM indicates higher demand and quicker property turnover. Given these conditions, the Section 8 gross yield appears to be a reliable benchmark for investment returns in this area. While the exact market rent would provide a clearer comparison, the current data supports a conservative approach to investment, favoring the lower end of the cap rate spectrum.
Investors should consider the stability and predictability of Section 8 rental income when evaluating the attractiveness of this ZIP code. The gross yield, whether at 4.6% or 6.9%, offers a stable return profile, especially in light of the moderate renter density and the absence of specific market rent data.
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.