Location: McDonough County, IL | Metro: McDonough County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,100 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a typical home in this ZIP code. The median home value in 61470 is reported to be $104,100. While this figure is low compared to the national average, it does not provide insight into the mortgage costs for an average home. To make a definitive judgment, one would need to know the typical mortgage rates and terms for this region.
The investor could also be concerned about the level of renter demand, given that only 11.3% of households are renters. This percentage suggests that the majority of residents in ZIP 61470 own their homes, which might imply a smaller pool of potential tenants. However, it is important to consider the broader context of the local economy and job market, which can influence the rental demand. Additionally, the percentage of renters does not necessarily correlate directly with the profitability of rental properties; it depends on vacancy rates and the ability to maintain occupancy.
Another objection might be whether Housing Choice Vouchers will keep up with the market rents, which are currently at $717. The voucher amount is typically adjusted annually based on changes in the cost of living and housing market conditions. However, the data does not specify the exact amount of the voucher in ZIP 61470 or how frequently it is updated. Without this information, it is difficult to assess if the vouchers will adequately cover the market rents over time.
In conclusion, while some aspects of the investment landscape in ZIP 61470 are favorable, such as the relatively low median home value and known market rents, other factors like mortgage costs and the dynamics of the local rental market remain unclear. It is crucial to conduct further research into these areas before making an informed decision.
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.