Location: Vermilion County, IL | Metro: Edgar County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
Skeptical investors considering rental properties in ZIP 61850 often have several key concerns that need addressing with concrete data.
Objection 1: Will Fair Market Rent (FMR) of $870 cover the mortgage on a $115,046 home?
The FMR of $870 for ZIP 61850 in fiscal year 2024 can indeed help cover the mortgage costs. Assuming an average mortgage rate of 4.5%, the monthly payment on a $115,046 home would be approximately $570, including principal, interest, taxes, and insurance. This means that the FMR of $870 is more than sufficient to cover the mortgage payment and leave room for maintenance and other expenses.
Objection 2: Is there enough renter demand at 10.1%?
A rental vacancy rate of 10.1% might initially seem concerning, but it's important to put this figure into perspective. A vacancy rate below 15% generally indicates a stable market. In ZIP 61850, the 10.1% vacancy rate suggests that there is still a reasonable demand for rental properties. However, the data does not provide insights into the number of renters or the competition in the area, which would offer a more comprehensive view of the rental market's health.
Objection 3: Will vouchers keep pace with $1,047 market rents?
The voucher amount of $870 falls short of the $1,047 market rent in ZIP 61850. This gap means that landlords accepting Section 8 vouchers may need to subsidize the difference between the voucher amount and the market rent. It's crucial to note that while the voucher amount might not cover the full market rent, it can still be a viable option for landlords who are willing to accept slightly lower rents to ensure consistent occupancy and avoid the risks associated with higher vacancy rates.
In conclusion, while the data shows that FMR will comfortably cover mortgage payments and indicates a stable rental market, it also reveals a discrepancy between voucher amounts and market rents. Landlords should carefully consider these factors when deciding whether to invest in ZIP 61850.
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.