Location: Vermilion County, IL | Metro: Edgar County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61870 in the Vermilion County, IL metro area reveals key insights for landlords and small-portfolio investors.
The rent math does not work favorably here. The Fair Market Rent (FMR) set at $970 for the fiscal year 2024 contrasts sharply with the actual market rent of $690, as reported by the Census ACS. This discrepancy suggests that landlords may struggle to justify higher rents based on the local market conditions.
Acquisition is relatively affordable, with a median home value of $94,521. However, the lack of data regarding days on market (DOM) and the percentage of homes requiring price cuts indicates that while the initial purchase might be within budget, the resale market's dynamics are unclear. Investors should proceed with caution and consider other factors such as property condition and location before making an acquisition decision.
Tenant demand is modest in ZIP 61870, which has a population of 1,085 and a 22.9% renter share. This means approximately 249 individuals are potential renters. Given the limited population size, competition among rental properties could be fierce, impacting occupancy rates and potentially leading to lower rental income unless properties offer unique amenities or are in highly desirable locations.
In summary, ZIP 61870 presents challenges for landlords due to the unfavorable rent math and modest tenant demand. While the median home value suggests affordable acquisitions, the incomplete data on market dynamics and the need for competitive offerings make it a risky investment. Landlords and investors must carefully weigh these factors and possibly look for additional sources of income or cost savings to make rental properties in this area viable.
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.