Location: Ford County, IL | Metro: Bloomington, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 61720 in Ford County, IL, for fiscal year 2024 is set at $1180. This figure represents the maximum amount that a landlord can charge for a unit to be considered affordable under the Section 8 Housing Choice Voucher program. However, without specific data on the current market rents for the area, it's challenging to provide a precise comparison. To determine if voucher tenants cashflow at the FMR, marginally, or only with premium units, we would need to know the actual market rent levels.
Given the median home value in ZIP 61720 is not available, deriving an exact rent-to-price ratio is not possible. Nevertheless, understanding the rent-to-price ratio typically helps investors gauge the potential profitability of rental properties relative to the cost of purchasing them. In areas where home values are significantly higher than rents, investing in rental properties can be less attractive due to lower yields. Conversely, when rents are high relative to home values, rental investments become more appealing.
The number of days on market (DOM) and the percentage of price cuts are also important metrics for assessing the local real estate market. These figures help understand how quickly homes sell and whether sellers often have to reduce their asking prices to attract buyers. Unfortunately, these details are currently unavailable for ZIP 61720.
In conclusion, based on the HUD FMR of $1180, landlords and small-portfolio investors can expect to maintain cashflow with Section 8 tenants, assuming the market rents align closely with this figure. The strongest investor angle in this scenario appears to be stability, given the guaranteed income stream provided by the federal government through the Section 8 program, which shields investors from fluctuations in the broader rental market.
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.