Location: Warren County, IL | Metro: McDonough County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The ZIP code 61438 is situated in a rural area where the total population stands at 739 individuals. Only 16.3% of these residents are renters, indicating a primarily owner-occupied community. The median household income in this area is $68,516, which suggests a middle-class demographic. However, the median home value is notably lower at $112,753, reflecting the affordability of homeownership in this region.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920. This figure is higher than the current market rent of $788, as reported by the Census ACS. This discrepancy between the FMR and the actual market rent highlights an opportunity for landlords and small-portfolio investors to potentially increase their rental income while still remaining competitive in the local market.
Given the low percentage of renters and the relatively modest median income, this ZIP code may be better suited for a hands-off voucher operator rather than a hands-on value-add buyer. The majority of residents prefer owning their homes, and the existing rental market is already priced below the FMR. For a hands-off operator, the lower median home value and the higher FMR can ensure steady cash flow through government-subsidized vouchers without the need for extensive property improvements or management.
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.