Location: Fulton County, IL | Metro: Fulton County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $810 for ZIP 61441 in fiscal year 2024 will be sufficient to cover the mortgage on a home. The median home value in this area is around $63,000. With typical mortgage rates currently ranging between 5% and 7%, the monthly mortgage payment for a home priced at $63,000 would likely fall below the FMR. This makes the FMR a reasonable threshold for covering mortgage expenses.
The investor may also wonder if there is enough renter demand at 21.8%. According to recent data, the median monthly owner costs for units with a mortgage in ZIP 61441 are approximately $1,221. Given that the FMR is lower than the median owner cost, it suggests that there could be a significant portion of potential renters who are price-sensitive. However, the relatively low median home value indicates that there is a market for affordable housing, which could sustain the rental demand.
Another concern might be whether housing vouchers will keep pace with the $1,115 market rents. The FMR of $810 represents the 40th percentile of rents, meaning that a substantial portion of rents are higher. While the FMR does not directly indicate the adequacy of vouchers, the Small Area Fair Market Rent (SAFMR) data often includes payment standards at 90% and 110% of the FMR. These standards suggest that vouchers should generally cover the majority of rents, but not necessarily the highest end of the market. Thus, while vouchers can help cover most rents, they may not fully cover the highest market rents.
To summarize, the FMR of $810 is likely to cover the mortgage on a home valued at $63,000, given typical mortgage rates. The 21.8% renter demand ratio, combined with the median home value, suggests a sustainable rental market. Lastly, while vouchers should cover the majority of rents, they may not fully match the highest market rents of $1,115.
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.