Location: Livingston County, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 61321 might raise several valid concerns regarding the Fair Market Rent (FMR) of $910 for the fiscal year 2024, the rental demand at 38.6%, and whether voucher usage will keep pace with market rents of $783.
Will FMR $910 cover the mortgage on an average home? The median home price in ZIP 61321 is $86,600, which is notably lower than the national average. Given this, it's important to consider the mortgage rates and potential monthly payments. Current mortgage rates vary, but let's assume a typical rate. A mortgage payment on a $86,600 home would likely be around $300-$400 per month, depending on the down payment and interest rate. Therefore, the FMR of $910 could comfortably cover the mortgage payment, leaving room for other expenses such as maintenance and utilities.
Is there enough renter demand at 38.6%? With 38.6% of households being renters, the demand for rental properties in ZIP 61321 is moderate. However, the data does not provide a direct comparison to historical trends or other similar markets. To fully assess demand, we'd need additional information on vacancy rates and tenant turnover. The United States Zip Codes website indicates a small percentage of vacancies, suggesting that demand is relatively stable. Still, this figure alone does not provide a complete picture of the rental market dynamics.
Will vouchers keep pace with $783 market rents? The Housing Choice Voucher Program's dashboard offers insights into voucher usage trends, though it doesn't specify trends for ZIP 61321. Generally, voucher amounts can lag behind market rents due to annual adjustments based on the FMR. In ZIP 61321, the voucher amount is $783, matching the current market rents. If the FMR increases in future years, the voucher amount should follow suit, ensuring continued support for tenants. However, the exact pace of adjustment is not clear from the available data.
The data suggests that while there are some uncertainties, particularly around rental demand and voucher trends, the FMR of $910 can adequately cover the mortgage on an average home in ZIP 61321. This makes the area a potentially viable investment for landlords and small-portfolio investors.
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.