Location: Warren County, IL | Metro: McDonough County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The ZIP code 61473 is located in a rural setting, primarily encompassing small towns and communities. With a total population of 1,279, it's a tight-knit area where nearly 30% of residents are renters. The median household income stands at $60,833, which is relatively modest but provides a stable economic foundation for the community. The median home value is also lower, at $94,870, indicating an affordable housing market.
In terms of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. However, the actual market rent, according to the Census ACS, is $840. This suggests that there is potential for rental properties to be priced slightly above the current market rate without significantly exceeding the affordability threshold for local residents.
Given these conditions, ZIP 61473 could suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the FMR and the presence of a consistent rental market make it a reliable investment, particularly with the safety net of Section 8 vouchers. For value-add buyers, the discrepancy between the FMR and market rent offers an opportunity to improve properties and increase rents closer to the FMR without pricing out tenants.
The modest income levels and low median home values indicate that many residents rely on assistance programs like Section 8 to afford housing. Therefore, landlords and small-portfolio investors should consider the long-term benefits of maintaining properties that comply with Section 8 requirements. This ensures a steady stream of tenants and rent payments, backed by government subsidies.
Investors looking to operate hands-off might find success by focusing on properties that meet the basic standards for Section 8 tenancy, avoiding the need for extensive renovations or management. On the other hand, those interested in value-add strategies can target properties that require improvements, leveraging the gap between current market rents and the FMR to justify higher rents post-renovation.
In conclusion, ZIP 61473 presents a balanced opportunity for both types of investors. The combination of a stable rental market, modest income levels, and the availability of Section 8 vouchers makes it a viable investment location for those willing to either maintain existing properties or enhance them to capture higher rents.
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.