Location: Bureau County, IL | Metro: Bureau County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 61323 for Section 8 properties, follow these steps:
Step 1: Calculate if the Fair Market Rent (FMR) of $970 can cover the debt service on a property. Since the median listing price is not available for ZIP 61323, it's impossible to determine the exact debt service. However, you must ensure that the FMR of $970 can cover your mortgage payments, taxes, insurance, and maintenance costs.
Step 2: Compare the market rent of $825 (as reported by the Census ACS) against the FMR of $970. The market rent is below the FMR, which means that landlords could potentially receive higher rental income through Section 8 vouchers compared to market rents. This is favorable for landlords looking to maximize their income.
Step 3: Assess the demand for rentals in the area. The percentage of renters in ZIP 61323 is 11.8%, which is relatively low. Additionally, the days on market (DOM) is not specified, making it difficult to gauge how quickly units are typically rented. If the DOM is high, it might indicate a slow-moving market, even with a low percentage of renters. Conversely, if the DOM is low, it suggests that there is sufficient demand to fill vacancies promptly.
If the FMR of $970 can cover all expenses related to owning the property, proceed to the next step. Otherwise, investing in ZIP 61323 would not be advisable as the rental income would not be sufficient to meet financial obligations.
If the market rent is below the FMR, landlords can expect a higher income from Section 8 tenants compared to market-rate tenants. This makes the investment more attractive.
The final decision hinges on whether the demand for rentals is sufficient. With only 11.8% of residents being renters, the market may not support a large number of rental properties. However, if the DOM is short, indicating quick leasing, the demand is likely sufficient to support an investment in Section 8 properties.
In summary, the decision to invest in ZIP 61323 for Section 8 properties depends on the ability of the FMR to cover expenses, the favorable comparison between market rent and FMR, and the sufficiency of rental demand. If all conditions are met, the answer is yes; otherwise, it depends on further analysis of local rental dynamics.
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.