Location: Peoria, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,340 |
| 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 ZIP code 61451 presents a unique investment opportunity, but it also comes with several concerns that a skeptical investor might raise.
Will FMR $860 (zip FY 2024) cover the mortgage on a $181,669 home?
The Federal Market Rent (FMR) for ZIP 61451 is set at $860 for FY 2024. To determine if this covers the mortgage, consider the typical interest rate and terms. Assuming a 30-year fixed-rate mortgage at 5%, the monthly payment on a $181,669 home would be approximately $970. This indicates that the FMR alone does not cover the mortgage payment, leaving a shortfall of roughly $110 per month. Landlords must factor in additional income sources or cost-saving measures to ensure profitability.
Is there enough renter demand at 15.8%?
The renter demand in ZIP 61451 is currently at 15.8%. While this percentage reflects the proportion of renters in the area, it does not directly indicate the strength of the rental market. However, given the median home value and the FMR, it suggests that there is a segment of the population willing to pay the required rent. To secure consistent tenant occupancy, landlords should focus on maintaining competitive rental properties and managing them effectively.
Will vouchers keep pace with N/A market rents?
Unfortunately, the data does not provide specific information regarding the pace of voucher increases relative to market rents in ZIP 61451. Landlords relying on voucher programs should monitor local HUD updates and be prepared for potential fluctuations in voucher amounts. It is advisable to have a mix of voucher and non-voucher tenants to mitigate risks associated with any discrepancies between voucher payments and market rents.
Investing in ZIP 61451 requires careful consideration of these factors to ensure a balanced approach to property management and financial planning.
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.