Location: Whiteside County, IL | Metro: Lee County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 61042 reveals a detailed picture of the potential returns for landlords and small-portfolio investors considering Section 8 properties. Using the Fair Market Rent (FMR) figure of $920 per month for a 2-bedroom apartment as of FY 2026, the annualized income would be $11,040. In contrast, the market rent stands at $796 per month according to the Census ACS, translating to an annual income of $9,552.
To determine the gross yield, we compare these annual incomes against the median home value of $200,677. For the Section 8 scenario, the gross yield is calculated as follows:
The difference in gross yields between the two scenarios is significant, with Section 8 providing a higher return at 5.5% compared to the market rent's 4.8%. However, the decision on which scenario is more realistic depends on several factors, including the local rental market dynamics and the specific requirements of Section 8 tenancy.
In ZIP 61042, the renter density is 26.8%, indicating that a substantial portion of residents are already renting. This suggests that there is demand for rental properties, which could support either scenario. However, the N/A-day DOM (Days on Market) implies that there is limited data on how quickly rental units are being filled, making it difficult to assess the speed at which properties can be leased out.
Given the higher gross yield offered by Section 8, it presents a more attractive option for investors seeking stable, government-backed rental income. However, the decision should also consider the administrative burden and tenant turnover rates associated with Section 8 properties. The market rent scenario, while offering a lower gross yield, might be more flexible and potentially subject to less regulatory oversight.
Ultimately, the choice between the two scenarios will depend on the investor's risk tolerance and the specific goals of their investment portfolio. Section 8 properties offer a higher gross yield, but the lack of data on DOM and other local market conditions means that further investigation into the specifics of the area is recommended before making a final decision.
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.