Location: Champaign-Urbana, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
A Section 8 investment in ZIP code 61875 presents several potential challenges that landlords must consider before proceeding. The primary issue is tenant turnover, which can be significantly higher at the market rent of $1,257 compared to the Federal Market Rent (FMR) of $1,210 for fiscal year 2024. This discrepancy suggests that tenants might struggle to afford the market rent, leading to frequent moves and higher vacancy rates.
Vacancy exposure is another concern, especially since the Days on Market (DOM) data is currently unavailable. In a competitive rental market, landlords may find themselves waiting longer than expected to fill vacancies, impacting their cash flow and overall profitability. Additionally, the typical home value of $286,335 paired with a median income of $118,929 can lead to deferred maintenance issues. Landlords must be prepared to invest in property upkeep to ensure compliance with housing standards and maintain a livable environment for tenants.
However, these risks are tempered by the high concentration of renters in the area, with 23.4% of residents being renters. High renter density often translates into greater demand for rental properties, including those accepting Section 8 vouchers. This demand can help mitigate the risks associated with tenant turnover and vacancy exposure, as there is a larger pool of potential tenants who can quickly fill available units.
In summary, despite the challenges posed by tenant turnover, vacancy exposure, and the need for regular maintenance, the strong renter base in ZIP 61875 provides a counterbalance. The overall verdict for a first-time Section 8 landlord in this area is moderate risk.
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.