Location: Bureau County, IL | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 61361 under the Section 8 program include significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance. Tenant turnover can be problematic due to the slight discrepancy between the market rent of $884 and the Fair Market Rent (FMR) of $890 for FY 2024. This narrow margin may lead to frequent changes in occupancy, as tenants might find it more advantageous to seek housing that exactly matches their voucher amount.
Vacancy exposure is another concern, exacerbated by the lack of data on Days on Market (DOM). Without this information, it's difficult to predict how long a property might remain vacant between tenancies, which can significantly impact cash flow. Additionally, the typical home value of $122,620 stands in stark contrast to the median income of $91,250, suggesting a substantial financial gap for residents. This disparity increases the likelihood of deferred maintenance, where homeowners may delay necessary repairs due to financial constraints, potentially affecting property quality and stability.
However, these risks are somewhat mitigated by the high renter share in the area, which is 18.5%. High renter density typically correlates with increased demand for rental properties, including those participating in the Section 8 program. This strong demand can help ensure that vacancies are filled promptly and that there is a steady pool of eligible tenants.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 61361 is moderate.
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.