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)
The analysis of the Section 8 cap-rate picture for ZIP code 61379 reveals some interesting dynamics when comparing the Federal Market Rent (FMR) and the market rent figures. Using the annualized 2BR FMR of $990 (for FY 2026), the gross yield can be calculated against the median home value of $129,316. This yields an implied gross-yield of approximately 0.77%, which is derived by dividing the annual rent by the median home value ($990 / $129,316).
In contrast, using the market rent figure of $868, the implied gross-yield drops to about 0.67%. This calculation is based on the same principle, where the annual market rent is divided by the median home value ($868 / $129,316).
The difference between these two gross-yields highlights the impact that Section 8 rates can have on investment returns. The higher gross-yield under the FMR scenario suggests a better potential return for landlords participating in the Section 8 program. However, it's important to note that the actual return on investment (ROI) will depend on various factors such as property management costs, vacancy rates, and maintenance expenses.
Given the 16.4% renter density in ZIP 61379, it's clear that a significant portion of the population may rely on rental housing, including those who might qualify for Section 8 assistance. While the exact days on market (DOM) is listed as N/A, indicating insufficient data for a precise figure, the lower renter density implies that landlords might face challenges in maintaining occupancy levels if they solely target Section 8 tenants.
In summary, while the Section 8 program offers a gross-yield of 0.77% based on the FMR, the market rent suggests a lower gross-yield of 0.67%. Investors should consider the higher yield from Section 8 participation as potentially advantageous, yet also recognize the possible limitations in tenant availability due to the relatively low renter density in the area. This analysis provides a baseline for further calculations and considerations specific to individual investment strategies.
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.