Location: Livingston County, IL | Metro: Bloomington, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 61744 for Section 8 purposes must evaluate several factors to make an informed decision. The first step is to determine if the Fair Market Rent (FMR) of $890 for the fiscal year 2024 can cover the debt service on a property valued at $201,336. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. To assess this, calculate the total annual debt service and compare it to the annual rental income based on the FMR. If the FMR does not sufficiently cover these costs, the answer is a clear No.
If the FMR of $890 clears the debt service, the next question is whether the market rent of $808 (as per Census ACS data) is above, at, or below the FMR. If the market rent is below the FMR, then the property can be rented out at the higher FMR rate, which would provide a positive margin for landlords. This scenario leads to a Yes for purchasing the property for Section 8.
In the case where the market rent equals the FMR, the property can still be rented out at the FMR rate, but there will be no additional margin. This situation requires a closer look at other factors such as property condition and potential for appreciation. The decision here is It Depends.
If the market rent exceeds the FMR, then renting the property under Section 8 would mean accepting a lower rental rate than what the market offers. This would generally lead to a No, unless the landlord has strategic reasons to participate in the Section 8 program despite the lower rates.
The third factor to consider is the demand for rentals in the area. With 21.4% of residents being renters and the days on the market (DOM) data not available, we must infer from the percentage alone. A 21.4% rental rate suggests moderate demand. However, without DOM data, it's impossible to gauge how quickly properties are being leased. If you find that the DOM is low, indicating quick leasing, then the answer is Yes. If DOM is high, suggesting slow leasing, then the answer is No. In cases where the DOM data is not available or inconclusive, the answer is It Depends.
To summarize:
Evaluating these points with the specific data provided will guide landlords to a well-informed decision about investing in ZIP 61744 for Section 8 purposes.
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.