Location: Fulton County, IL | Metro: Fulton County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 61524 is centered around the $10 difference between the Fair Market Rent (FMR) of $940 and the market rent of $950, as reported by the Census Bureau's American Community Survey (ACS). This represents a 1.05% gap between the two figures. In this scenario, where the FMR is less than the market rent, landlords and small-portfolio investors must consider the implications of housing voucher tenants at rates below the open-market level.
The lower FMR means that landlords who accept Section 8 vouchers will be renting properties at a rate slightly below the local market price. This can affect the overall yield on investment properties. However, the cost of accepting voucher tenants should be weighed against the stability they provide. Voucher holders typically have a reliable source of rental income, which can lead to fewer vacancies and lower turnover costs. In ZIP 61524, only 6.5% of residents are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. The median income in the area is $70,000, suggesting that while there is a need for affordable housing, the majority of residents could afford to pay market rates.
The decision to participate in the Section 8 program should be made with an understanding of the local rental market dynamics. Despite the $10 shortfall per month, landlords can benefit from the predictability of government-backed rental payments. Moreover, the stability provided by voucher holders can be particularly valuable in a market where the rental population is small and potentially less stable due to higher competition for units. While the direct financial yield might be slightly reduced, the long-term benefits of consistent tenancy and reduced management costs can offset the initial discrepancy.
To summarize, the $10 gap between the FMR and market rent in ZIP 61524 presents a challenge for maximizing immediate rental income. However, the reliability of voucher tenants and the stability they bring to a property can make up for the shortfall, especially in a market with limited rental demand and a significant proportion of owner-occupiers.
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.