Location: Saline County, IL | Metro: Hardin County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
A skeptical investor analyzing ZIP code 62947 might question whether the Fair Market Rent (FMR) of $920 for the fiscal year 2026 can sufficiently cover the mortgage on a home valued at $160,298. This concern is valid because the FMR represents the maximum amount that a household should pay for housing, based on the area's median income levels. However, it does not directly translate into mortgage coverage. To accurately assess if the FMR will cover the mortgage, one needs to calculate the monthly mortgage payments based on current interest rates and loan terms. Without these specifics, we cannot definitively state whether the FMR will cover the mortgage.
The investor may also be concerned about the low renter demand in ZIP 62947, which stands at 7.2%. This percentage suggests that only a small fraction of the population is actively seeking rental properties. This could imply limited opportunities for landlords to fill vacancies or increase rents. However, it's important to note that the 7.2% figure is just one metric and does not account for other factors such as the availability of rental units, the quality of those units, and the overall economic conditions of the area. Additionally, the data does not provide information on how this demand compares to previous years or what trends might indicate future growth in demand.
Another point of contention for an investor could be the uncertainty regarding whether Housing Choice Vouchers will keep pace with the local market rents. The data provided indicates that the market rents are currently unknown (N/A), which makes it challenging to predict if voucher amounts will match or exceed these rents. For voucher holders to afford market-rate rentals, the voucher value must at least equal the average rent. Given the lack of specific market rent data, it's impossible to make a precise comparison. However, historically, voucher amounts have been adjusted annually to reflect changes in the cost of living and housing costs, suggesting that they may adjust to meet the local demand.
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.