Location: Stephenson County, IL | Metro: Stephenson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The data available for ZIP 61027, located in Stephenson County, IL, suggests that this area would be best suited as a cash-flow anchor within a Section 8 portfolio strategy. Given the lack of specific market data such as median home values and recent sales trends, we can rely on the Federal Market Rent (FMR) figure provided, which stands at $920 for the fiscal year 2026. This amount represents the government's benchmark for rental rates in the area.
To understand why ZIP 61027 serves as a cash-flow anchor, it is important to note that the FMR is often set close to the actual market rents, especially in areas where there is limited speculative investment activity. In ZIP 61027, the absence of significant new construction or gentrification efforts indicates a stable market, making it less likely for rental prices to fluctuate dramatically.
The fact that there are no recent listings or specific market data available points to a lower level of activity in the residential real estate market. This could be due to several factors, including a smaller population base or an economy that does not attract high levels of external investment. However, this stability is beneficial for cash flow because it means that once you establish a rental property in this ZIP code, the risk of having to significantly reduce rents or deal with extended vacancy periods is minimal.
While the exact median income and renter share percentages are not provided, the overall indication is that ZIP 61027 offers a predictable and consistent environment for generating rental income. Landlords and small-portfolio investors should focus on acquiring properties that offer a competitive advantage in terms of location and condition, ensuring they can command the FMR without substantial concessions.
It is worth noting that the potential for significant appreciation in ZIP 61027 appears limited given the lack of recent market data and the absence of indicators pointing towards rapid economic growth or development projects. Therefore, the primary strategic benefit of investing in this ZIP code is its role in providing a steady and reliable source of rental income, which is crucial for maintaining the financial health of a real estate portfolio.
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.