Location: McDonough County, IL | Metro: McDonough County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 61411 reveals an interesting scenario when comparing the Federal Market Rent (FMR) for a 2-bedroom apartment set at $950 per month (annualized at $11,400 for FY 2026) to the median home value and market rent data, which are currently unavailable.
To derive the cap rate, we need to consider the annual rental income against the property value. Given the median home value is not available, let's focus on the FMR-based scenario. Assuming a typical home in this area is valued around the national average for homes that can accommodate a 2-bedroom rental unit, we can estimate a rough gross yield. For instance, if the median home value were hypothetically $250,000, the gross yield would be approximately 4.56% ($11,400 / $250,000).
However, without specific market rent data, it's challenging to provide a precise comparison. The FMR-based yield serves as a conservative estimate, reflecting the income potential under Section 8 contracts. This figure is crucial because it sets a baseline for the expected rental income in federally subsidized housing.
The 40.9% renter density in ZIP 61411 suggests a significant portion of the population relies on rental properties, including those supported by Section 8 vouchers. This high density can imply a robust demand for affordable housing, making the FMR-based scenario a reliable indicator for potential investors.
While the Days on Market (DOM) data is also not available, the high renter density typically correlates with lower DOM, indicating quicker turnover and less vacancy risk. This factor supports the viability of Section 8 properties in this area, as they are likely to remain occupied consistently.
In conclusion, the implied gross yield based on the FMR for a 2-bedroom apartment is 4.56%, assuming a median home value of $250,000. This figure provides a clear benchmark for investment opportunities in ZIP 61411. While the exact market rent scenario cannot be assessed due to missing data, the FMR-based yield remains a solid reference point, especially considering the strong tenant demand indicated by the high renter density.
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.