Location: Iroquois County, IL | Metro: Kankakee, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1080 for ZIP 60922 can cover the mortgage on a home priced at $211,238. To address this concern, we must first consider the prevailing mortgage rates. According to recent data from various sources, the average 30-year fixed mortgage rate is currently around 6.5%. Using this rate, the monthly mortgage payment on a $211,238 home would be approximately $1,285, based on a principal and interest calculation alone. This means that the FMR of $1080 falls short by roughly $205 per month, indicating that relying solely on FMR might not be sufficient to cover mortgage payments.
The second objection could be regarding the renter demand in ZIP 60922, which stands at 23.5%. Critics might argue that this percentage is too low to ensure steady tenant occupancy. However, the data shows that while the percentage of renter-occupied units is indeed lower than some other areas, it still represents a significant portion of the housing market. Given the relatively low number of vacancies, there appears to be a stable demand for rental properties. Landlords should monitor local trends closely, but the current data suggests that there is enough demand to maintain occupancy levels.
Lastly, an investor might be concerned about whether Housing Choice Vouchers will keep up with the market rent, which is currently at $1,059. While the voucher program aims to provide affordable housing options, it is important to note that voucher amounts can vary widely depending on the specific needs of tenants and the availability of funds. The current FMR of $1080 suggests that vouchers may cover a substantial portion of the market rent, but it does not guarantee full coverage. Investors should be aware that they may need to accept lower rent payments than the market rate if they wish to participate in the voucher program.
In summary, while the FMR of $1080 does not fully cover the mortgage payment on a $211,238 home, there is a stable demand for rental properties at 23.5%, and vouchers can partially offset the cost of market rents at $1,059. These factors should be considered carefully before investing in ZIP 60922.
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.