Location: Pulaski County, IL | Metro: Massac County, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 62941 might raise several valid concerns regarding the financial feasibility of investing in rental properties within this area. Addressing these points directly with available data can provide clarity.
First objection: Will the Fair Market Rent (FMR) of $1,280 (metro FY 2026) cover the mortgage on a $138,349 home?
The FMR of $1,280 is the average rent that covers the cost of housing in the area. To determine if it can cover the mortgage, we need to consider the interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage at an interest rate of around 5%, the monthly mortgage payment on a $138,349 home would be approximately $750. This means the FMR of $1,280 comfortably exceeds the mortgage payment, leaving room for other expenses such as maintenance, insurance, and property taxes.
Second objection: Is there enough renter demand at 17.0%?
The 17.0% figure represents the percentage of households that are renters. While this may seem low, it's important to understand that even a smaller percentage can represent a significant number of potential tenants. The actual number of renters in ZIP 62941 is critical to gauge demand. However, the provided data does not specify the total number of households in the area. Without this information, it's challenging to definitively assess whether 17.0% is sufficient to meet the needs of landlords and small-portfolio investors. It's also worth noting that areas with lower renter percentages often have higher owner-occupancy rates, which can indicate stability and a good local economy.
Third objection: Will vouchers keep pace with market rents of $734?
Vouchers are designed to help low-income families afford housing. In ZIP 62941, the voucher amount must be compared to the market rent of $734 to see if it's adequate. According to HUD guidelines, voucher payments should generally align with the FMR, which is $1,280 in this case. If the voucher amount is close to or above $734, it will likely be sufficient for most units in the area. However, the exact voucher amount isn't provided in the data. Landlords should verify that the voucher program in their area offers amounts that are competitive with market rents to ensure they're not subsidizing the difference.
In conclusion, while some aspects of the data leave questions unanswered, the FMR provides a solid basis for covering mortgage costs. The percentage of renters suggests a moderate demand, but the absolute number of potential tenants is crucial. Lastly, the alignment of voucher payments with market rents is essential for maintaining profitability, and landlords should confirm the specifics of the voucher program in ZIP 62941.
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.