Location: Rockford, IL | Metro: Rockford, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
The investment landscape for Section 8 properties in ZIP code 61132, located in Unknown, IL, presents several challenges that could impact profitability and operational stability. Firstly, the tenant turnover rate is unknown, which makes it difficult to predict the frequency of new tenants entering the property. This uncertainty can lead to fluctuations in rental income, especially when considering the Fair Market Rent (FMR) for the area is set at $1020 for FY 2024. Landlords should be prepared for potential gaps between market rent expectations and the fixed FMR.
Vacancy exposure is another significant risk factor. The average days on market (DOM) for vacant properties is not available, suggesting a lack of historical data to gauge how quickly units might fill up once vacated. A longer DOM period can result in reduced rental income and increased costs associated with maintaining an empty unit. Additionally, the absence of data regarding typical home values and median incomes in the area indicates a need for caution when assessing the financial health of potential tenants and the overall market conditions.
Despite these risks, the high concentration of renters in ZIP 61132 provides a counterbalance. Although the exact percentage of renter share is not specified, a high renter density typically translates into robust demand for housing vouchers. This demand can stabilize occupancy rates and ensure a steady stream of income, even if individual tenant turnovers occur. However, landlords must be vigilant about the quality of their properties, as the deferred maintenance exposure remains unclear without specific figures on home values and median incomes.
Verdict: Moderate risk for a first-time Section 8 landlord. The unknowns regarding tenant turnover and vacancy exposure necessitate careful management and contingency planning, while the high renter density offers some assurance of demand.
Data Sources: FMR data from HUD (2027).
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.