Section 8 Fair Market Rent (FMR) for ZIP 61953 - 2027

Location: Douglas County, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$850
1 Bedroom	$930
2 Bedrooms	$1,020
3 Bedrooms	$1,350
4 Bedrooms	$1,700
5 Bedrooms	$1,972
6 Bedrooms	$2,209
7 Bedrooms	$2,386
8 Bedrooms	$2,505

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,518

Median Household Income

$78,214

Housing Units

2,914

Renter Percentage

23.6%

Occupancy Rate

92.5%

Renter Occupied

637

The classification of ZIP code 61953, located in Tuscola, Illinois, reveals a unique blend of characteristics that situate it as a moderate opportunity for both yield and stability.

The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1050, while the market rent stands at $885. This indicates a potential subsidy gap where landlords could benefit from the higher FMR if they qualify for Section 8 programs. The median home value of $175,600 provides a baseline for investment costs, but the disparity between the FMR and market rent suggests a yield advantage when utilizing Section 8 vouchers.

Yield: With a FMR above the market rent, landlords can achieve higher rental incomes through the Section 8 program, leading to better yields compared to the local market rate.
Stability: Tuscola has a 23.6% renter occupancy rate, which is relatively low. This implies a smaller pool of potential tenants, possibly affecting vacancy rates and property turnover. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties are rented, but the median household income of $78,214 offers some assurance regarding tenant financial stability.

Given these factors, ZIP 61953 does not fit neatly into a high-yield/low-stability "flip-style" market nor a steady-cashflow zone. Instead, it represents an area with moderate potential for both yield and stability. Landlords can expect to earn slightly above market rents through Section 8 subsidies, but the lower renter occupancy rate poses a risk to consistent cash flow.

To maximize returns, landlords should focus on maintaining a strong tenant screening process and ensuring properties meet all necessary qualifications for the Section 8 program. Additionally, understanding the local job market and economic trends will be crucial for predicting future stability.

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.