Location: Logan County, IL | Metro: Decatur, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The median home price in ZIP 62543, Latham, IL, was last reported at $130,000. Given the Fair Market Rent (FMR) for the area in fiscal year 2024 is $810, it's crucial to consider whether this figure can sufficiently cover the mortgage on a typical home in this region. The FMR is calculated based on the average rent paid by low- and moderate-income households and is intended to reflect the cost of housing in a particular area.
To determine if the FMR will cover the mortgage, we need to look at the potential mortgage payment on a $130,000 home. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment on such a property would be approximately $615. This means that the $810 FMR could indeed cover the mortgage payment, leaving a margin for maintenance and other expenses.
Regarding the question of whether there is enough renter demand at 24.6%, the data shows that the percentage of households renting in ZIP 62543 is relatively low. However, this does not necessarily mean that the demand for rentals is insufficient. Rental demand is influenced by various factors including employment opportunities, student populations, and the overall economic health of the area. While the data does not provide a comprehensive analysis of these factors, it suggests that landlords should carefully evaluate the local rental market before investing.
The final concern is whether vouchers will keep pace with market rents of $700. The data indicates that the FMR is higher than the market rent, which implies that voucher holders might have a better chance of finding affordable housing. However, the voucher utilization rate for ZIP 62543 is not directly provided in the available data. To accurately assess this, we would need to examine the number of vouchers issued and utilized in the area relative to the total number of eligible households. Without this specific information, it's challenging to definitively conclude how well vouchers will meet the needs of renters paying $700 per month.
In summary, while the $810 FMR can likely cover the mortgage on a home priced at the median for ZIP 62543, the relatively low rental demand percentage of 24.6% necessitates a thorough investigation into the local market dynamics. As for the pace of vouchers against market rents, the available data suggests a positive outlook, but more detailed analysis is required to make a concrete assessment.
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.