Location: Champaign-Urbana, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 61813, located in the Champaign-Urbana, IL HUD Metro FMR area, does not work favorably for landlords. The Fair Market Rent (FMR) set at $930 for fiscal year 2024 is significantly higher than the reported market rent of $725 according to Census ACS data. This discrepancy suggests that landlords might struggle to find tenants willing to pay the higher FMR rate, which could lead to vacancies or necessitate lowering the rent to match market conditions.
Regarding acquisition affordability, the median home value of $152,088 presents a moderate entry point for investment. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts indicates that the local real estate market's dynamics are unclear. Landlords and investors should proceed with caution, considering these missing metrics could affect the ease and cost of acquiring properties.
Tenant demand in ZIP 61813 is relatively low given the population size of 2,043 and a renter share of 20.0%. With fewer individuals seeking rental housing, competition among landlords could be high, potentially driving down rents further. Additionally, the limited number of renters means that finding suitable tenants might be challenging, especially if they are unwilling to pay the FMR rate.
In summary, while the median home value offers a reasonable entry point into the market, the mismatch between the FMR and actual market rent, combined with the low tenant demand, poses significant challenges for landlords and small-portfolio investors. The lack of recent sales data complicates assessing the true affordability of acquisitions. Therefore, it is advised that potential investors conduct thorough due diligence and consider local economic factors before committing to investments in this area.
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.