Location: Pulaski County, IL | Metro: Pulaski County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $920 for a two-bedroom unit will sufficiently cover the mortgage on a home. While specific mortgage costs are not provided, it is important to consider that FMR reflects the median rent for a given area and typically covers a range of rental properties. To ensure the FMR adequately supports mortgage payments, investors should consult with financial advisors or use mortgage calculators to assess their individual scenarios.
The same investor could also doubt the adequacy of the renter demand at 42.9%. However, this figure suggests a moderate level of demand, which is not necessarily low. It indicates that nearly half of the housing units in ZIP 62976 are occupied by renters. This percentage is significant and provides a reasonable pool of potential tenants. Additionally, rental demand can fluctuate due to various factors such as job availability, population growth, and housing affordability. Monitoring these trends will help in understanding future demand.
Another concern might be whether housing vouchers will keep pace with the market rents, which currently stand at $672 for a one-bedroom unit. According to HUD data, the FMR for a two-bedroom unit in ZIP 62976 is $920. Vouchers are generally adjusted annually to reflect changes in the local rental market. Therefore, while there is no guarantee that voucher amounts will exactly match market rents, they are designed to provide a safety net for low-income renters and are likely to remain competitive.
In conclusion, while some uncertainties exist regarding specific mortgage costs and precise voucher coverage, the overall data for ZIP 62976 indicates a viable investment opportunity with moderate renter demand and fair market rents that are aligned with the local rental market trends.
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.