Location: Champaign-Urbana, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
The potential risks for investing in Section 8 properties in ZIP code 61824 in Unknown, IL, are significant and should be carefully considered before proceeding. Tenant turnover is a critical concern, especially when comparing the market rent to the $1050 Fair Market Rent (FMR) for FY 2024. High turnover can lead to increased costs associated with finding new tenants and maintaining the property. Additionally, vacancy exposure is another issue, as the days on market (DOM) for rental units in the area is currently unavailable. This lack of data makes it difficult to predict how long a unit might remain vacant, potentially leading to lost income.
Deferred maintenance is also a risk factor, particularly when the typical home value and median income in the area are not specified. Without these figures, it's challenging to assess the financial capacity of residents to maintain homes properly, which can result in higher repair and maintenance costs for landlords. The high proportion of renters, indicated by the unspecified percentage of the renter share, suggests that there could be a robust demand for housing vouchers. However, this same high density of renters can also increase competition among landlords for Section 8 tenants, making it harder to fill vacancies.
Despite these risks, the high renter density generally implies a greater demand for housing assistance, which could benefit landlords willing to participate in the Section 8 program. However, the lack of specific data points such as market rent, DOM, typical home values, and median incomes leaves some uncertainties about the overall financial stability and demand dynamics in the area.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.