Location: Iroquois County, IL | Metro: Ford County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 60918 reveals some interesting dynamics between federally mandated rental rates and market-driven rents. Using the Federal Market Rent (FMR) for a 2-bedroom apartment set at $970 per month for fiscal year 2026, we can calculate an annualized income of $11,640. This translates into an implied gross yield of approximately 7.87% when compared to the median home value of $147,875. The calculation is straightforward: ($11,640 / $147,875) * 100 = 7.87%.
In contrast, the Census ACS reported market rent for a similar unit stands at $842 per month, which annualizes to $10,104. This results in an implied gross yield of about 6.83% relative to the median home value: ($10,104 / $147,875) * 100 = 6.83%. This scenario presents a lower return on investment compared to the FMR-based scenario.
The 18.9% renter density in ZIP 60918 suggests that there is a significant portion of homeowners rather than renters. However, this does not necessarily mean that the market rent scenario is more realistic. The FMR-based scenario offers a higher gross yield, making it more attractive for landlords participating in the Section 8 program. It's important to note that the participation in such programs requires adherence to federal guidelines, which might influence the actual rental income received.
The N/A-day Days on Market (DOM) indicates that there is no readily available data on how quickly properties are rented out in this area. This could be due to various factors, including the stability of the housing market or the limited availability of rental listings. Given the higher gross yield from the FMR, it is likely that landlords would prefer to participate in the Section 8 program if they qualify, despite the slightly lower renter density. However, the decision should also consider the administrative overhead and potential risks associated with government subsidies.
In summary, while the market rent scenario provides a more conservative estimate of returns, the FMR-based scenario offers a significantly higher gross yield of 7.87%, compared to the 6.83% from market rent. Landlords should weigh these figures against their willingness to comply with Section 8 regulations and the local rental market conditions.
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.