Section 8 Fair Market Rent (FMR) for ZIP 61329 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP code 61329 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns directly.

• Will FMR $1,010 (metro FY 2026) cover the mortgage on a $138,262 home?: The Fair Market Rent (FMR) for ZIP 61329 stands at $1,010 for metro FY 2026. This amount needs to be compared against the typical mortgage payment for a home valued at $138,262. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly mortgage payment would be approximately $720. Therefore, the FMR of $1,010 can comfortably cover the mortgage payment, leaving a buffer for maintenance and other expenses.
• Is there enough renter demand at 28.2%?: At first glance, the 28.2% rental occupancy rate might seem low, indicating a potential lack of demand. However, this percentage must be analyzed in the context of the overall housing market. If the majority of homes in ZIP 61329 are owner-occupied, the rental market could still be robust due to the smaller pool of available rental units. To determine if there's sufficient demand, we'd need to look at the number of renters versus the total population and the vacancy rates specifically for rental properties. Unfortunately, the data provided does not give us these specifics, so we cannot conclusively state whether the demand is adequate without further investigation.
• Will vouchers keep pace with $778 market rents?: The average market rent in ZIP 61329 is $778. Given that the FMR is set at $1,010, it suggests that voucher amounts should be sufficient to cover the market rents. However, it's important to note that voucher programs can vary widely in terms of availability and payment standards. In ZIP 61329, if the voucher payment closely aligns with the FMR, landlords should expect to receive an amount that covers their costs, including mortgage payments and maintenance. Yet, the effectiveness of this alignment depends on the local administration of the voucher program and any caps or adjustments they may apply.

The data shows that while the FMR can adequately cover the mortgage on a home valued at $138,262, questions remain about the strength of the rental market and the consistency of voucher payments with actual market rents. These uncertainties require further research into local rental trends and the specifics of how the Section 8 voucher program operates within ZIP 61329.

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.