Location: Ogle County, IL | Metro: Rockford, IL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $277,456 | 0.5% | F |
| 4BR | $1,610 | $360,568 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 61084 might raise several concerns regarding the feasibility of investing in properties under the Section 8 program. These objections can be directly addressed using the available data.
Will FMR $1050 (zip FY 2024) cover the mortgage on a $278,550 home?
The Fair Market Rent (FMR) for ZIP 61084 in fiscal year 2024 is set at $1050. This amount must be compared against the expected monthly mortgage payment to determine if it's sufficient. Assuming a typical mortgage rate of around 4%, the monthly mortgage payment for a $278,550 home would be approximately $1349, which exceeds the FMR. However, this calculation does not account for potential tax benefits, property appreciation, or the fact that many landlords also receive a portion of the tenant's rent. Therefore, while the FMR alone does not fully cover the mortgage, the additional factors can make the investment viable.
Is there enough renter demand at 10.0%?
The rental vacancy rate in ZIP 61084 stands at 10.0%. A higher vacancy rate suggests lower demand for rentals. However, a 10.0% vacancy rate is considered moderate and indicates that there is still a significant number of renters looking for housing. The challenge lies in ensuring the property meets the criteria for Section 8 eligibility and is attractive to tenants. Landlords should focus on maintaining their properties to meet the demand effectively.
Will vouchers keep pace with $850 market rents?
The market rent in ZIP 61084 is currently $850. Section 8 vouchers are designed to cover a substantial portion of the rent, but they do not always match the exact market rates. In ZIP 61084, the voucher amount is $1050, which is above the current market rent. This means that even if market rents increase, as long as they remain below $1050, the vouchers will continue to cover the cost. However, if market rents rise significantly above $1050, landlords may face challenges in covering the excess without additional support from the tenant.
In conclusion, while ZIP 61084 presents some challenges such as the FMR not fully covering the mortgage payment and a moderate vacancy rate, the data also shows positive aspects like the voucher amount exceeding the current market rent. These points should be carefully weighed when making an investment decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.