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 a Section 8 investment in ZIP code 61825 in Unknown, IL, include high tenant turnover due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1050 for FY 2024. This can lead to increased costs associated with frequent property turnovers such as cleaning, repairs, and marketing efforts to attract new tenants.
Vacancy exposure is another concern, especially considering the lack of data on the average days on market (DOM) for rental properties. A longer DOM can result in lost rental income, which is critical for maintaining cash flow and covering mortgage payments and other expenses.
Deferred maintenance is also a significant risk, given the absence of specific data on typical home values and median incomes in the area. Without these figures, it's challenging to assess whether residents have the financial capacity to maintain their homes adequately, leading to possible structural or cosmetic issues that require costly repairs.
However, these risks must be weighed against the high percentage of renters in the area, which typically translates into higher demand for housing vouchers. This demand can help ensure that there are always qualified tenants ready to take up residency, thereby reducing the likelihood of extended vacancies.
In conclusion, based on the available data, the risk for a first-time Section 8 landlord in ZIP code 61825 is moderate.
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.