Location: Knox County, IL | Metro: Knox County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 61488 reveals a favorable environment for those looking to capitalize on the federal housing assistance program. The HUD Fair Market Rent (FMR) for the Knox County, IL metro area for fiscal year 2026 is set at $920. This figure is significantly higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $636. As such, voucher tenants in this area will generally cashflow at the FMR level, providing landlords with a steady and reliable income stream that exceeds the local market rates.
To further understand the investment potential, we can look at the median home value in ZIP 61488, which is $127,384. Using this figure, we can calculate a rent-to-price ratio. With an average market rent of $636, the annual rent would be approximately $7,632. This translates to a rent-to-price ratio of about 6%, which is quite low compared to typical rental properties. A low rent-to-price ratio suggests that the area may be more suitable for homeownership rather than rental investment, but given the higher FMR for voucher tenants, it presents a unique opportunity for landlords.
In terms of the rental versus buying dynamics, the data indicates that there is no significant day median Days on Market (DOM) or percentage of price cuts shared by sellers. This implies that the housing market is relatively stable, with little fluctuation in sales prices or time spent on the market. For Section 8 investors, this stability means that they can expect consistent demand for their properties without worrying about rapid changes in the local housing market.
The strongest investor angle in ZIP 61488 is undoubtedly cashflow. Given the substantial difference between the HUD FMR and the actual market rent, landlords can secure a steady income that comfortably covers mortgage payments, maintenance costs, and other expenses, leaving a healthy profit margin. This makes the area particularly attractive for small-portfolio investors seeking a dependable source of passive income.
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.