Location: Knox County, IL | Metro: Knox County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 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 61572 reveals a unique blend of yield potential and market stability that can be advantageous for both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,040, significantly higher than the local market's rent at $595. This stark contrast indicates a high-yield environment where properties could potentially command premium rents compared to the actual market rates.
To understand the stability of this market, we must consider several factors. First, the percentage of renters stands at 18.1%, which is relatively low. This suggests that the demand for rental properties might not be as robust as in areas with a higher proportion of renters. Additionally, the median household income in this ZIP code is $73,125, which is a moderate figure that supports the ability of residents to pay higher rents but also indicates a level of financial security that contributes to stability.
The lack of available data on days on market (DOM) makes it challenging to assess the speed at which rental properties are occupied. However, given the significant disparity between the FMR and the market rent, it is reasonable to assume that there could be a competitive edge for landlords who can offer well-maintained properties at slightly above-market rates but below the FMR.
In conclusion, ZIP code 61572 leans towards being a high-yield market due to the substantial gap between the FMR and the current market rent. The stability is moderate, supported by a decent median income but tempered by a lower percentage of renters. For landlords looking to maximize returns through higher rental yields, this ZIP code presents an opportunity. However, they should be prepared for a market that requires careful management to maintain occupancy rates and ensure long-term tenant stability. Small-portfolio investors should consider the potential for capital appreciation, as the home value of $121,792 could rise closer to the FMR levels over time, providing both rental income and equity growth.
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.