Location: Lee County, IL | Metro: Lee County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 61324 is limited due to incomplete data. However, using the available information, we can still draw some conclusions.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 61324 for fiscal year 2026 is set at an annualized rate of $920. This figure represents the government's estimate of what a 2-bedroom rental unit should cost under the Section 8 program.
To calculate the implied gross yield for a property participating in the Section 8 program, we need to compare this FMR to the median home value in the area. Unfortunately, the median home value for ZIP 61324 is not available. Therefore, we cannot directly compute the gross yield based on this comparison.
However, if we consider the scenario where market rents are also not available, the gross yield would be based solely on the FMR of $920. In such a case, the gross yield would be lower compared to a situation where market rents exceed this amount. The exact figure cannot be determined without the median home value, but it would imply that properties in ZIP 61324 might offer a less attractive gross yield when leased through the Section 8 program.
The renter density in ZIP 61324 is 68.4%, indicating a significant portion of the population rents their homes rather than owning them. This high renter density suggests a robust demand for rental housing, including those supported by Section 8 vouchers.
Despite the lack of specific market rent data, the high renter density and the presence of Section 8 vouchers indicate that there could be strong interest from tenants looking to secure housing through the program. The Days on Market (DOM) figure is also not available, which would typically help us understand how quickly units are rented out. Without this information, it's challenging to assess the speed at which a landlord could expect to fill vacancies.
In conclusion, while the exact gross yield cannot be calculated due to missing data points, the high renter density supports the idea that Section 8 properties could be in demand. Landlords and small-portfolio investors should carefully evaluate the potential benefits and drawbacks of participating in the Section 8 program in ZIP 61324, considering the fixed rent amounts and the local rental market 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.