Location: Ford County, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 61840, located in the HUD Metro FMR Area of Ford County, IL, reveals several key points regarding the viability of this area for rental investments. The HUD Fair Market Rent (FMR) for ZIP 61840 is set at $1030 for fiscal year 2024. However, due to the lack of specific market rent data, it's challenging to provide a direct comparison between the HUD FMR and the actual market rates.
Based on the available HUD FMR, voucher tenants in this area would generally cashflow at the FMR rate, assuming that the market rent does not exceed the FMR significantly. In regions where the market rent closely aligns with or slightly exceeds the FMR, cashflow can be marginal, but with the current data, it suggests that cashflow is positive when renting at the FMR.
The median home value for ZIP 61840 is not provided, making it difficult to calculate an exact rent-to-price ratio. However, without this figure, we cannot directly assess how the rental income compares to the potential equity growth from homeownership. This absence of data implies that the decision to rent versus buy may be influenced more by qualitative factors rather than quantitative ones.
Regarding the days on market (DOM) and price cut percentages, both pieces of information are also not available. These metrics are crucial for understanding the local real estate market dynamics, such as how quickly properties are rented out and the frequency of price adjustments needed to secure tenants. Without these specifics, it's hard to gauge the urgency of finding tenants and the negotiation strategies landlords might need to employ.
The strongest angle for Section 8 investors in ZIP 61840 appears to be cashflow. Given the HUD FMR of $1030, landlords can expect a stable source of income from voucher tenants, assuming operating costs are managed effectively. While appreciation and stability are also important considerations, the clarity of the cashflow scenario makes it the most compelling argument for investing 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.