Location: Knox County, IL | Metro: Fulton County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61544 reveals a unique balance between yield and stability that could be appealing to both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area stands at $970 for fiscal year 2024, which is notably higher than the local market rent of $850. This difference suggests a potential for higher rental yields when compared to the average market conditions.
Moreover, the median home value in ZIP 61544 is $93,642, indicating a relatively affordable market for property acquisition. Given the FMR and market rent figures, it's reasonable to conclude that the area offers a decent yield opportunity for those willing to invest in properties and rent them out at or near the FMR rates. However, the 12.7% share of renters in the population is a critical factor that affects the stability of the market.
The low percentage of renters suggests that there might be limited demand for rental properties, potentially leading to higher vacancy rates and less stable cash flows. Additionally, the absence of data on the number of days a property remains on the market (DOM) further complicates the assessment of how quickly a rental property can be leased. This lack of liquidity could pose challenges for investors looking to generate consistent cash flow.
On the positive side, the median household income of $81,250 provides some assurance regarding the financial stability of the residents, which could help mitigate the risk of non-payment. However, the income figure alone does not fully compensate for the low renter population percentage and the uncertain leasing dynamics implied by the missing DOM data.
In conclusion, ZIP 61544 presents a scenario that leans towards a high-yield/low-stability market. The higher FMR compared to the market rent and the affordable median home value indicate opportunities for strong rental yields. However, the limited rental demand and uncertain leasing speed point to a less stable environment, making it more suitable for investors who can handle the risks associated with potentially longer vacancy periods.
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.