Location: Vermilion County, IL | Metro: Vermilion County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 61857 provides insight into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for FY 2024 is set at $1020 per month. However, the median home value and market rent figures are not available, complicating a direct comparison.
To annualize the 2BR FMR, we multiply $1020 by 12 months, resulting in an annual rental income of $12,240. Given that the median home value is not available, we cannot calculate a precise gross yield for this scenario. Nevertheless, assuming a typical home value in the region, the annualized FMR would imply a lower gross yield compared to what might be achievable through market rents.
In terms of market conditions, ZIP 61857 has a renter density of 8.7%, indicating a relatively low demand for rental properties. Additionally, the Days on Market (DOM) figure is not available, which could affect the speed at which properties are leased and the overall vacancy rates.
The implied gross yield based on the annualized FMR is calculated by dividing the annual rental income by the property value. For instance, if a property in ZIP 61857 were valued at $150,000, the gross yield would be approximately 8.16% ($12,240 / $150,000 * 100). This is a hypothetical example, as the actual median home value is not provided.
Given the limited data, it's challenging to definitively state which scenario—Section 8 or market rent—is more realistic. However, considering the low renter density, it may be more practical to focus on the Section 8 program, as it ensures a stable tenant base through government subsidies. The lack of market rent data suggests that there might be fewer market-driven rental properties, making Section 8 a potentially more reliable option.
Investors should also consider the administrative aspects of participating in the Section 8 program, such as the application process and compliance requirements. While these factors do not directly impact the gross yield, they can influence the overall investment decision.
In conclusion, while the exact gross yield cannot be determined without the median home value, the annualized FMR for a two-bedroom unit in ZIP 61857 offers a stable income stream that can be attractive to investors. The low renter density supports the idea that Section 8 participation could provide a more predictable rental environment compared to relying solely on market rents.
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.