Location: Iroquois County, IL | Metro: Champaign-Urbana, 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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $110,928 | 0.93% | C |
| 3BR | $1,410 | $149,256 | 0.94% | C |
| 4BR | $1,530 | $191,367 | 0.8% | D |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 60957, located in Paxton, IL, reveals a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $930, whereas the Census ACS reports the average market rent at $783. This indicates a gap of $147, or approximately 19%, where the FMR exceeds the market rent.
This gap makes Paxton an attractive location for voucher tenants, positioning it as a strong yield play for investors. Accepting Section 8 vouchers ensures a steady and reliable source of rental income that aligns with government-set standards, which are higher than what the market currently offers. Given that only 22.3% of residents in Paxton are renters, there is less competition for rental properties, making it easier to attract voucher holders who can pay the higher FMR rate.
In Paxton, the median home value stands at $148,502, while the median income is $69,014. These figures suggest that homeownership is relatively affordable, but the income level also implies that many residents might rely on assistance such as housing vouchers to manage their living expenses. By accepting Section 8 tenants, landlords can capitalize on the difference between the FMR and the actual market rent, thus increasing their net yield.
The higher FMR rate provides a cushion against potential economic downturns, ensuring that landlords receive a consistent income that is above the local average. This is particularly beneficial given the lower percentage of renters in the area, indicating a smaller pool of potential tenants who could pay market rates. Voucher tenants, therefore, represent a stable and valuable segment of the rental market in Paxton.
In conclusion, the disparity between the FMR and the market rent in ZIP 60957 presents a clear advantage for landlords willing to accept Section 8 vouchers. With a 19% premium over market rates, Paxton offers a compelling opportunity to enhance rental yields, especially in a context where the majority of residents are homeowners and the rental market is less competitive.
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.