Location: Champaign-Urbana, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 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)
The HUD Fair Market Rent (FMR) for ZIP 61878 is set at $930 for the fiscal year 2024. In contrast, the market rent as reported by the Census American Community Survey (ACS) stands at $808. This indicates that voucher tenants would generate positive cash flow at the HUD FMR, as the FMR exceeds the average market rent by $122 per month.
To further analyze the investment potential, consider the median home value in ZIP 61878, which is $149,654. Using this figure, we can calculate the rent-to-price ratio. At the market rent of $808, the annual rental income would be approximately $9,696, leading to a rent-to-price ratio of about 6.5%. This suggests that the area offers a reasonable return on investment when compared to the cost of property ownership.
However, it's important to note that the data does not provide specifics on the median days on market (DOM) or the percentage of properties that require price cuts. These metrics are crucial for understanding the dynamics between renting and buying in the area. Without this information, it's challenging to make precise predictions about how long it might take to find a tenant or whether price adjustments will be necessary to attract buyers.
In conclusion, the strongest investor angle in ZIP 61878 appears to be cash flow, given that the HUD FMR significantly outpaces the market rent. This makes it an attractive location for landlords and small-portfolio investors looking to secure steady rental income through Section 8 vouchers.
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.