Location: Bloomington, IL | Metro: Bloomington, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 61772 provides insight into potential investment opportunities for landlords and small-portfolio investors. With a median home value of $238,458, we can derive the gross yield for both the Section 8 scenario and the market rent scenario.
In the Section 8 scenario, the annualized Fair Market Rent (FMR) for a 2-bedroom property is $1230. This translates to an annual income of $14,760 if the property is rented at this rate. Given the median home value, the implied gross yield for a Section 8 property in ZIP 61772 would be approximately 6.2%. This is calculated by dividing the annual income ($14,760) by the median home value ($238,458).
For the market rent scenario, the data indicates that the market rent is not available (N/A). However, considering the 26.6% renter density, it is reasonable to assume that market rents could be higher than the Section 8 rates. Without specific market rent figures, we cannot calculate an exact gross yield, but it is likely to exceed the 6.2% implied by the Section 8 rates.
The gross yield comparison between the two scenarios highlights the lower profitability associated with Section 8 properties. While Section 8 provides stable, government-backed rental income, the market rent scenario, assuming higher rental rates, would offer a better gross yield for investors. The lack of data on market rent and days on market (DOM) makes it challenging to provide a precise comparison, but based on typical market dynamics, the market rent scenario is more realistic for achieving higher returns.
To summarize, the Section 8 cap-rate for ZIP 61772, based on the 2BR FMR of $1230, implies a gross yield of about 6.2%. In contrast, the market rent scenario, though lacking specific figures, is expected to deliver a higher gross yield due to the generally higher market rates compared to government-set rates. Investors should consider these factors when evaluating the potential of properties in ZIP 61772.
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.