Location: De Witt County, 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 | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61839 in De Witt County, Illinois, reveals several key points regarding its viability for Section 8 landlords and small-portfolio investors.
First, let's examine if the rent math works. The Fair Market Rent (FMR) for FY 2024 stands at $930, while the market rent as per Census ACS data is $807. This indicates that landlords can expect a premium of $123 above the market rate when participating in the Section 8 program. However, it is important to note that the FMR is set by HUD and may not fully account for all operational costs, such as property maintenance and management fees.
Regarding acquisition affordability, the median home value in ZIP 61839 is $146,416. Unfortunately, the data on days on market (DOM) and the percentage of homes that required a price cut is not available. Without these metrics, it is challenging to assess the ease of acquiring properties at a reasonable price. Nonetheless, the median home value suggests that purchasing homes in this area could be financially feasible for many investors.
There is also a need to consider tenant demand. With a population of 558, the rental market is relatively small, but 20.3% of residents are renters. This means there are approximately 113 potential tenants in the ZIP code. Given the size of the population, the number of potential Section 8 tenants may be limited, which could impact the availability of qualified applicants.
In conclusion, ZIP 61839 presents a mixed picture for Section 8 landlords and small-portfolio investors. The rent math works favorably, offering a slight premium over market rates. Acquisition appears affordable based on the median home value, though the lack of data on DOM and price-cut percentages makes it difficult to gauge the competitive landscape. Tenant demand is modest due to the small population size, but the 20.3% renter share provides a base of potential occupants. Overall, the ZIP code may be suitable for investors seeking a niche market with fewer competitors, but they should be prepared for potentially lower volume of applications and a smaller pool of tenants.
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.