Location: Johnson County, IL | Metro: Johnson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 62995 reveals several key points for potential landlords and small-portfolio investors. Firstly, regarding the rent math, it does not favorably align with the financial metrics provided. The Fair Market Rent (FMR) set at $810 for the fiscal year 2024 is notably higher than the market rent of $667 reported by the Census ACS. This discrepancy suggests that setting rents at the FMR level may be challenging given the current market conditions.
Secondly, the acquisition cost of properties in this area is relatively low, with a median home value of $175,911. However, the lack of data on days on market (DOM) and the percentage of homes that require price cuts indicates that while the initial purchase might be affordable, the liquidity and flexibility of the real estate market remain unclear. This uncertainty could pose risks for quick resale or adjusting prices to attract tenants.
Lastly, there is a significant tenant demand in ZIP 62995. With a total population of 6,339 and a renter share of 30.3%, approximately 1,918 individuals are actively seeking rental housing. This demand can support a rental business, provided that the rents are set competitively at or below the market rate of $667.
In conclusion, while the tenant demand is present and the acquisition costs are reasonable, the rent math must be carefully managed to ensure profitability. Setting rents at the FMR level of $810 would likely exceed what the market can bear, given the $667 market rent figure. Therefore, landlords should focus on competitive pricing and operational efficiencies to succeed in ZIP 62995. The affordability of property acquisition offers a solid foundation, but the success hinges on aligning rent expectations with the actual market rates and effectively managing the property to meet the needs of the 30.3% renter population.
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.