Location: Whiteside County, IL | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
A landlord considering purchasing property in ZIP code 61283 for Section 8 should follow a structured decision-making process based on the following criteria:
1) Does the Fair Market Rent (FMR) of $860 cover the debt service on a property valued at $124,148?
If the answer is yes, proceed to the next question. The FMR of $860 must be sufficient to cover the monthly mortgage payment, property taxes, insurance, and other expenses associated with owning the property. Given the average property value of $124,148, a landlord can calculate their debt service and compare it against the FMR.
If the answer is no, then investing in ZIP 61283 for Section 8 purposes is not advisable. A property that cannot be adequately serviced by the FMR would likely result in financial losses over time.
2) Is the market rent of $900 above, at, or below the FMR?
If the market rent is above the FMR, the landlord has the option to charge higher rents to non-Section 8 tenants, which can provide additional income. In ZIP 61283, the market rent is slightly above the FMR, indicating a positive margin that could be utilized for non-Section 8 units.
If the market rent is at or below the FMR, the landlord will need to rely solely on the FMR for rental income. This scenario is less favorable as it leaves little room for profit if the FMR does not sufficiently cover the debt service.
3) Are 9.8% of residents renting, plus the unknown number of days on the market (DOM), indicative of sufficient demand?
If the 9.8% of renters represents a stable and reliable tenant pool, and there is a low number of days on the market (DOM), this suggests strong demand. However, since the DOM is listed as N/A, landlords must investigate further to determine the actual demand for rentals in ZIP 61283.
If the percentage of renters is too low, or the DOM is excessively high, indicating difficulty in finding tenants, then the investment in ZIP 61283 may not be worthwhile. Landlords must ensure that there is a steady stream of potential tenants to fill Section 8 units.
The final decision hinges on whether the FMR covers the debt service and whether the market conditions support a reasonable expectation of occupancy. With an FMR of $860 and a market rent of $900, the investment in ZIP 61283 could be viable if the debt service is covered and there is sufficient demand for rentals.
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.