Location: Stephenson County, IL | Metro: Rockford, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The real estate market in ZIP 61039 presents a nuanced scenario for landlords and small-portfolio investors, particularly when considering the median home value of $211,097. This figure serves as a baseline for understanding the overall market health and potential rental yields.
The fact that the percentage of listings reduced and the median days on market (DOM) are not available suggests a stable market where price adjustments are minimal and sales occur relatively quickly. This stability can imply strong pricing power for the next 12-24 months, allowing landlords to maintain or slightly increase rents without significant pushback from tenants.
On the rental side, the Federal Market Rent (FMR) for ZIP 61039 is set at $1020 for fiscal year 2024, compared to the current market average of $954 according to the Census ACS. This indicates that there is room for rental rates to rise to meet the FMR level, benefiting landlords who can adjust their pricing accordingly. The gap between FMR and market rent also signals that the area might be undervalued in terms of rental income potential, suggesting an opportunity for growth in rental yields.
For long-term hold investors, the appreciation thesis in ZIP 61039 appears realistic given the stable home values and the upward trend in rental rates. However, without specific historical appreciation data, it's important to note that while there is potential for appreciation, the rate may be modest rather than explosive. Landlords and investors should focus on steady cash flow and gradual appreciation, rather than expecting rapid increases in property value.
To summarize, the combination of a median home value of $211,097, the absence of frequent price reductions, and the alignment of rental rates with FMR levels suggests a market conducive to maintaining strong pricing power. Investors can expect to benefit from stable property values and increasing rental incomes, making ZIP 61039 a solid choice for those looking to build a long-term 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.