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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $262,044 | 0.53% | F |
| 4BR | $1,440 | $367,359 | 0.39% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 61012, located in Winnebago County, Rockford, IL MSA, reveals a favorable environment for those looking to invest in rental properties. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1080, which is notably higher than the market rent of $992 as reported by the Census ACS. This means that voucher tenants can cashflow at the FMR, providing a solid financial advantage for landlords.
To further analyze the investment potential, consider the median home value in the area, which stands at $269,009. Using this figure, we can calculate the rent-to-price ratio. With an average monthly rent of $992, the annual rent would be approximately $11,904, leading to a rent-to-price ratio of about 4.4%. This ratio indicates that the property values in ZIP 61012 are relatively high compared to the rental income, suggesting that appreciation rather than cashflow might be the stronger investment angle.
However, since voucher tenants can cashflow at the FMR of $1080, landlords have the opportunity to earn above-market rents without the risk of vacancy. The data does not provide a median Days on Market (DOM) or a percentage of price-cut shares, but given the strong demand for affordable housing, it is likely that properties will sell quickly and without significant price adjustments. This implies that the stability of the rental market is also a compelling factor for investors.
In conclusion, while the appreciation potential is promising due to the high median home value, the most compelling angle for Section 8 investors in ZIP 61012 is the guaranteed cashflow from voucher tenants who can afford the higher FMR rates. This ensures a steady income stream with minimal risk of vacancy, making it an attractive option for both landlords and small-portfolio investors.
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.