Location: Bloomington, 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 skeptical investor might question whether the Fair Market Rent (FMR) of $940 for ZIP 61753 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $228,843. This concern is valid given that mortgage payments can be substantial, especially when considering interest rates and loan terms. However, the median home price in ZIP 61753 is around $225,380, which is slightly below the value of the property in question. If we assume a conservative mortgage rate, the FMR should theoretically cover a significant portion of the mortgage, though it's important to factor in other expenses such as property taxes, insurance, and maintenance.
The investor might also doubt if there is sufficient renter demand at 12.1%. According to recent data, approximately 17.5% of housing units in ZIP 61753 are rented, indicating a higher demand than initially thought. Additionally, the rental vacancy rate is zero, suggesting strong competition among renters for available units. While the percentage of renter demand is relatively low, the actual number of renters is high enough to sustain a healthy rental market.
A final objection could be whether housing vouchers will keep pace with market rents, currently at $939. Vouchers typically adjust annually based on the local cost of living and housing market conditions. Given that the FMR is very close to the market rent, it's likely that voucher amounts will remain competitive. However, this requires monitoring local adjustments to ensure they continue to align with market conditions.
In summary, while there are valid concerns regarding mortgage coverage, renter demand, and voucher adequacy, the data suggests that the rental market in ZIP 61753 is stable and potentially profitable for landlords and small-portfolio investors. Continuous monitoring of local market trends and policy changes is advised to maintain profitability.
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.