Location: DeKalb County, IL | Metro: DeKalb County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
U.S. Census Bureau data (2024)
The ZIP code 60550 in Shabbona, IL, presents a market with moderate investment appeal, rated 3.0 out of 5 by Repit. With an average home value of $263,064 and an average monthly rent of $1,125, the price-to-rent ratio is 19.5:1, which does not meet the 1% rule. This suggests that the rental yield is relatively low compared to the home value.
The median household income in 60550 is $75,943, and 31.1% of residents are renters. The employment concentration in the area leans towards sectors with higher volatility, indicating that income fluctuation could affect rental stability. However, the market has shown stable home value growth, with a 5-year compound annual growth rate (CAGR) of 6.0%. The gross yield is 5.1%, and the capitalization rate (cap rate) is 3.3%, which is low but still offers a moderate return on investment.
The current 30-year mortgage rate of 6.30% exceeds the estimated cap rate, leading to negative leverage where financing reduces cash-on-cash returns. Nonetheless, the 5-year internal rate of return (IRR) is 9.3%, suggesting that appreciation and other factors can offset the lower cap rate.
In summary, ZIP 60550 is neither a high-yield/low-stability flip-style market nor a steady-cashflow zone. It falls somewhere in between, offering a balanced opportunity for investors willing to navigate the nuances of the local economy and housing market. The key figures driving this assessment include the low cap rate of 3.3%, the moderate gross yield of 5.1%, and the stable home value growth of 6.0% over five years.
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.