Section 8 Fair Market Rent (FMR) for ZIP 61705 - 2027
Location: Bloomington, IL | Metro: Bloomington, IL MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,160 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$120,547
Housing Authorities Serving ZIP 61705
The ZIP code 61705, located in Bloomington, IL, presents several key considerations for real-estate investors interested in Section 8 properties. Let's address the primary concerns raised by potential investors:
- Will FMR $1350 (zip FY 2024) cover the mortgage on a $378,385 home?: According to recent data, the median home value in ZIP 61705 is $378,385. Current mortgage rates vary, but assuming a typical rate of 5%, the monthly mortgage payment on a $378,385 home would be approximately $1,991. This amount exceeds the Fair Market Rent (FMR) of $1350 set for FY 2024. Therefore, the FMR alone will not cover the mortgage payment.
- Is there enough renter demand at 19.0%?: The rental vacancy rate in ZIP 61705 is 5.27%, which is significantly lower than the national average of 10.12%. A low vacancy rate suggests strong demand for rental properties. However, the 19.0% figure mentioned in the objection refers to the percentage of households that receive housing assistance, which does not directly indicate the overall rental demand. With a low vacancy rate, it can be inferred that there is sufficient demand for rental units, even those requiring housing assistance.
- Will vouchers keep pace with $1,276 market rents?: The FMR for ZIP 61705 is $1350 for FY 2024. While this figure is slightly above the market rent of $1,276, it is important to note that FMRs are set at the 40th percentile of market rents, meaning that half of the rental units in the area are priced below this amount. Thus, vouchers should generally cover a significant portion of the market rent, though they may not fully cover the highest-priced units.
The data indicates that while the FMR will not fully cover the mortgage on a home valued at $378,385, there is a robust rental market in ZIP 61705. Investors should consider the potential for rental income beyond just the FMR when evaluating properties for Section 8 eligibility. Additionally, the low vacancy rate supports the idea that there is strong demand for rental properties, which can help ensure steady occupancy and cash flow.
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.