Location: Stephenson County, IL | Metro: Jo Daviess County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,260 |
| 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)
The median income in ZIP code 61089 stands at $66,250, which presents a challenging scenario for renters when it comes to affording the market rate rent of $830 per month. This figure represents a significant portion of their monthly income, making it difficult for many households to secure housing without financial assistance.
Comparatively, the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for the metro area in fiscal year 2026 is $980, which is higher than the current market rate but still poses an affordability issue for the average renter in this ZIP code. The difference between the FMR and the actual market rate suggests that while some assistance might be available, it may not fully cover the cost of renting in this area.
With 22.3% of the 526 residents being renters, there is a notable segment of the population seeking housing. However, the affordability gap means that landlords will face stiff competition from those who can offer lower rents or accept government vouchers. The discrepancy between the median income and both the market rate and FMR highlights the necessity for flexible rental strategies.
For landlords considering their options between accepting voucher payments versus relying on cash-paying tenants, the data points to a strategic decision. Accepting vouchers could stabilize occupancy rates, given the high cost of rent relative to the median income. On the other hand, cash-paying tenants might offer slightly higher rents, closer to the FMR, but the risk of vacancies is greater due to the limited financial resources of potential renters.
The takeaway for landlords is clear: understanding the local economic conditions and the affordability gap is crucial. Landlords should weigh the benefits of guaranteed payments from vouchers against the potential for higher rents from cash-paying tenants. Given the tight budget constraints faced by many in ZIP 61089, a mixed strategy that accommodates both types of tenants may be the most effective approach to ensure steady occupancy and income.
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.