Location: Rockford, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $235,672 | 0.63% | D |
| 3BR | $1,920 | $354,003 | 0.54% | F |
| 4BR | $2,190 | $413,006 | 0.53% | F |
| 5BR | $2,540 | $483,982 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 60152, located in Marengo, IL, within the Rockford, IL MSA, reveals several key points regarding its viability for real estate investment focusing on Section 8 rental opportunities.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 60152 in fiscal year 2024 is set at $1,320, which exceeds the market rent of $1,148 reported by the Census Bureau's American Community Survey. This means that landlords participating in the Section 8 program can expect to receive a higher rent subsidy compared to the average market rate, making it financially viable to rent properties to Section 8 tenants.
Regarding the affordability of acquisitions, the median home value in ZIP 60152 stands at $346,683. The lack of data on days on market (DOM) and the low percentage of homes requiring price cuts (0.2%) suggest a stable market where homes do not linger long on the market and do not typically require significant price reductions to sell. This indicates that purchasing homes for Section 8 rentals should be manageable without the risk of overpaying or facing prolonged periods of vacancy.
The third point to consider is the tenant demand. With a total population of 12,417, the renter share is 24.9%, indicating a moderate demand for rental properties. While this share is not exceptionally high, it still represents a substantial portion of the local population that could benefit from Section 8 housing assistance.
In conclusion, ZIP 60152 presents a favorable environment for Section 8 investments. The higher FMR compared to the market rent ensures that landlords can cover their costs and potentially generate a profit. Acquisition costs are reasonable, supported by a stable real estate market, and there is sufficient tenant demand to fill rental units. Landlords and small-portfolio investors looking to enter the Section 8 market in this area can do so with confidence, knowing they will receive a strong financial return relative to market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.