Location: Mason County, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 62682 might raise several concerns regarding the feasibility of investing in rental properties within this area. Here, we address those key objections with the available data.
Objection 1: Will Fair Market Rent (FMR) of $930 cover the mortgage on a $107,051 home?
The FMR of $930 in ZIP 62682 for fiscal year 2024 can be analyzed against the typical mortgage costs for a home valued at $107,051. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly mortgage payment would be approximately $520. This means that the FMR could indeed cover the mortgage costs, with $410 left over for other expenses such as property taxes, insurance, maintenance, and potential profit. However, it's important to note that if the interest rates rise, so will the mortgage payments, which could impact the profitability of the investment.
Objection 2: Is there enough renter demand at 13.3%?
The rental demand in ZIP 62682 is indicated by the 13.3% share of renters among the total housing units. While this percentage might seem low, it's crucial to understand the local context. A lower percentage of renters does not necessarily mean insufficient demand. The actual number of potential renters must be considered alongside the vacancy rates and competition levels. Unfortunately, the data provided does not include specific vacancy rates or the number of rental units in the area, making it difficult to fully assess the demand. It's advisable to conduct further research to determine if there is a steady flow of renters and how quickly properties are typically leased.
Objection 3: Will vouchers keep pace with the market rents?
The availability of voucher programs is critical for landlords in areas where they significantly influence the rental market. However, the data provided does not specify whether the voucher amounts in ZIP 62682 will align with the FMR of $930. In many regions, voucher amounts do lag behind market rents, potentially leading to lower occupancy rates. To make a well-informed decision, it's necessary to investigate the specifics of the voucher program in this ZIP code, including recent adjustments and trends in funding. Without this information, it's challenging to predict how effectively vouchers will support market rents.
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.