Location: Vermilion County, IL | Metro: Vermilion County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 61814 provides insight into the financial viability of properties in this area for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in FY 2024 is set at $1040 per month, while the market rent based on Census ACS data stands at $883 per month.
To annualize these figures, we multiply them by 12 months. For the FMR scenario, the annual rent would be $12,480 ($1040 x 12), whereas the market rent would total $10,596 ($883 x 12).
The median home value in ZIP 61814 is $170,003. Using this figure, we can calculate the implied gross yield for both the FMR and market rent scenarios. For the FMR-based rent, the gross yield is approximately 7.34%, calculated by dividing the annual rent of $12,480 by the median home value of $170,003. In contrast, the gross yield based on market rent is about 6.23%, derived from the annual rent of $10,596 divided by the same median home value.
Given the 15.7% renter density in ZIP 61814, it is important to consider how many units might realistically be occupied by renters participating in the Section 8 program. The lower renter density suggests that while there is a demand for rental housing, it may not be as high as in areas with greater rental populations. This could impact the ability to consistently fill units with Section 8 tenants, potentially making the market rent scenario more likely.
The Days on Market (DOM) being listed as N/A indicates either an insufficient number of sales or listings to provide a reliable average, or that the data is not available. This absence of information makes it difficult to assess the speed at which rental units turn over or how quickly properties are sold, which is crucial for understanding cash flow and investment liquidity.
In summary, the Section 8 scenario offers a higher gross yield of 7.34% compared to the market rent scenario's yield of 6.23%. However, the lower renter density and unknown DOM suggest that achieving the higher Section 8 yield may be challenging without a robust pipeline of qualified applicants. Investors should weigh these factors carefully when considering their investment strategy in ZIP 61814.
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.