Location: Coles County, IL | Metro: Clark County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 61912 might have several concerns regarding the feasibility of investing in rental properties here. Let's break down these objections and address them with the available data.
Objection 1: Will Fair Market Rent (FMR) of $920 (for the metro area in fiscal year 2026) be sufficient to cover the mortgage on a home priced at $144,052?
The FMR of $920 does not directly indicate the mortgage payment for a property valued at $144,052. To accurately assess this, one would need to consider the interest rate, loan terms, and the percentage of the home value being financed. However, using an average interest rate and typical down payment, the monthly mortgage payment could be significantly higher than $920. This suggests that relying solely on FMR might not fully cover the mortgage expenses, especially if the property is financed at a high interest rate or with a smaller down payment.
Objection 2: Is there enough renter demand at 15.8%?
The 15.8% figure represents the share of renters in the housing market. While this percentage indicates a moderate level of demand, it's essential to understand that this statistic alone doesn't guarantee a robust rental market. The actual number of potential renters and the vacancy rate in ZIP 61912 are crucial factors to consider. If the number of renters is low or the vacancy rate is high, it could signify weak demand despite the percentage. Unfortunately, the provided data does not offer insights into these specifics.
Objection 3: Will vouchers keep pace with market rents of $828?
The voucher amount is critical for landlords who wish to participate in government-assisted housing programs. If the voucher payments are consistently below the market rent of $828, landlords may find it unprofitable to accept vouchers. The data does not specify the exact voucher amounts for ZIP 61912, making it difficult to definitively state whether vouchers will align with market rents. However, historically, voucher amounts tend to lag behind market rents due to federal funding constraints and local cost-of-living adjustments.
In summary, while the FMR and market rent figures provide some context, they do not fully address the concerns raised by a skeptical investor. A comprehensive analysis would require additional data points such as the actual number of renters, vacancy rates, and detailed information on voucher amounts and their trend over time.
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.