Section 8 Fair Market Rent (FMR) for ZIP 61630 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should invest in ZIP 61630 (Unknown, IL) for Section 8 properties, follow this decision tree based on the specific data points provided.

1. Does the Fair Market Rent (FMR) of $990 cover your debt service?

• Yes: If the FMR of $990 is sufficient to cover your debt service, proceed to the next question. Debt service includes all mortgage payments, property taxes, insurance, and other fixed costs associated with owning a rental property.
• No: If the FMR of $990 does not cover your debt service, then purchasing a property in ZIP 61630 would not be financially viable under the Section 8 program. You must ensure that the FMR can sustainably support your financial obligations.

2. How does the market rent compare to the FMR?

• Above: If the market rent is higher than the FMR of $990, you can potentially earn additional income by renting to non-Section 8 tenants. However, this does not directly impact the viability of Section 8 investments.
• At: If the market rent is around $990, the property will be competitive in the rental market, but you won't benefit from any premium over the FMR when renting to Section 8 participants.
• Below: If the market rent is lower than the FMR of $990, you may find that Section 8 rates provide better returns than the local market. This makes Section 8 investments particularly attractive in ZIP 61630.

3. Is there sufficient demand for Section 8 rentals?

• It depends: With the percentage of renters and days on the market (DOM) unspecified, we cannot definitively conclude the demand for Section 8 properties. Typically, a higher percentage of renters and a lower DOM indicate strong demand. Conversely, a low percentage of renters and high DOM suggest weak demand.

In summary, if the FMR of $990 covers your debt service and the market rent is below or equal to the FMR, ZIP 61630 could be a viable investment for Section 8 properties. However, the lack of data on the percentage of renters and DOM means that further investigation is necessary to assess the overall demand for rental properties in this area.

Data Sources: FMR data from HUD (2027).

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.