Location: Lee County, IL | Metro: Lee County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61318, located in the Lee County, IL metro area, reveals key insights for landlords and small-portfolio investors.
The rent math does not work favorably. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,130, which is slightly below the current market rent of $1,143 based on Census ACS data. This indicates that landlords might struggle to cover costs if they aim to meet the FMR guidelines, as the market demands a higher rate.
Acquisition is moderately affordable. With a median home value of $188,271, potential investors can acquire properties at a reasonable cost. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that the local real estate market's liquidity and pricing flexibility are unclear. This ambiguity could pose risks for new investors looking to enter the market quickly or without significant negotiation.
Tenant demand is relatively low. The population of 595 residents, combined with a 24.7% renter share, means that only about 147 individuals are likely seeking rental housing. This limited pool of tenants could make it challenging to find suitable renters promptly, potentially leading to longer vacancy periods and reduced income for landlords.
Verdict: ZIP code 61318 offers an affordable entry point for property acquisition but faces challenges due to a mismatch between the FMR and market rent, as well as a small tenant base. Investors should proceed with caution, considering the potential difficulties in attracting and retaining tenants, as well as the financial pressures of maintaining rental properties at slightly above FMR levels. The modest population size limits the scale of investment opportunities, making this area better suited for smaller-scale operations rather than large portfolios.
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.