Location: Iroquois County, IL | Metro: Iroquois County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $990 for ZIP code 60930, as projected for fiscal year 2026, will sufficiently cover the mortgage on a home valued at $169,171. To evaluate this, consider that the median home value in this area is relatively low, suggesting a potential for affordable mortgages. However, the exact mortgage amount depends on interest rates, down payment size, and loan terms, which are not specified in the provided data. Thus, while $990 FMR provides a baseline, it may not fully cover all mortgage scenarios.
The investor could also be concerned about the level of renter demand in the area, given that only 19.5% of residents are renters. This percentage indicates a lower demand compared to areas with higher percentages of renters. Nevertheless, the rental market still exists, and the demand can be met through strategic property management and marketing efforts. The key is to understand the local demographics and adjust investment strategies accordingly.
Another objection might arise regarding whether housing vouchers will keep pace with the market rents, which are currently at $1,523. Vouchers are designed to help low-income families afford housing but do not necessarily match the full market rent. In ZIP 60930, the voucher amount is likely to be closer to the FMR of $990 rather than the market rent of $1,523. This means that landlords accepting vouchers should expect to receive an amount that covers a portion of the rent, not the full market price. Therefore, relying solely on voucher recipients to fill units may not be financially viable without additional support mechanisms.
In summary, while the FMR of $990 does provide some assurance for covering mortgage costs, it is contingent upon favorable financing conditions. The 19.5% renter rate suggests a niche market that requires careful targeting. Lastly, housing vouchers will not likely meet the full market rent of $1,523, necessitating a balanced approach to tenant selection and possibly supplementary income sources to maintain profitability.
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.